What characterizes a voidable contract?

A voidable contract is characterized by the provision that one or both parties have the right to annul or void the contract due to specific issues, such as misrepresentation, undue influence, or coercion. This means that while the contract is initially valid and enforceable, it can be declared void at the discretion of the aggrieved party.

The key aspect of a voidable contract is that it remains valid until the party with the option to void it decides to exercise that right. This flexibility provides important protections for parties who may have entered into the contract under less than ideal circumstances.

In contrast to the other options, which imply different characteristics, this definition accurately reflects the nature of a voidable contract and highlights the power dynamics involved in such agreements. This option emphasizes that a voidable contract is not completely invalid; rather, it holds potential validity that can be acknowledged or rejected based on the circumstances that led to its creation.