What characterizes a voidable contract?

A voidable contract is characterized by the fact that it can be rescinded or canceled by the aggrieved party. This typically occurs when one party has the right to enforce the contract, but due to circumstances such as misrepresentation, undue influence, fraud, or the incapacity of one party, the aggrieved party can choose to either enforce the contract or void it. The essence of a voidable contract lies in the ability of the aggrieved party to make this choice, which serves to protect individuals from unjust situations where they may have entered a contract under duress or false pretenses.

In contrast, scenarios such as both parties being mistaken about a fundamental fact, one party being mistaken about a fact, or simply having an agreement on the same thing in the same sense do not encapsulate the essence of a voidable contract. While mistakes can lead to a contract being voidable under certain conditions, they do not universally define it. Understanding this distinction is crucial for recognizing the implications of contracts that are subject to rescission based on the actions or inactions of the parties involved.