An agreement is voidable contract when it is made under certain circumstances that make it susceptible to being annulled or cancelled. Voidable contracts are different from void contracts, which are unenforceable and have no legal effect. A voidable contract can be enforced if the party who has the right to void it chooses not to do so.
There are several situations in which an agreement may be considered voidable. The first is when one party to the contract was coerced or unduly influenced into entering into the agreement. This is known as duress or undue influence and can occur when one party threatens or blackmails the other party into signing the contract against their will.
Another situation that can make an agreement voidable is when one party is incapable of entering into a contract due to mental incapacity or a lack of legal capacity. This may include minors who are not legally allowed to enter into certain types of contracts, or individuals who are mentally incapacitated or under the influence of drugs or alcohol at the time of signing the contract.
An agreement may also be deemed voidable if it was entered into based on fraud or misrepresentation. This can occur if one party deliberately misrepresents or withholds information from the other party that is material to the agreement. For example, if a seller falsely represents the condition of a product in order to induce the buyer to purchase it, the agreement may be voidable.
Finally, an agreement may be voidable if it is entered into under duress or undue influence. This can occur when one party makes threats or uses coercion to force the other party to enter into the agreement against their will. For example, if an employer forces an employee to sign an agreement under the threat of losing their job, the agreement may be voidable.
In conclusion, an agreement is a voidable contract when it is made under certain circumstances that make it susceptible to being cancelled or annulled. These situations may include coercion, undue influence, incapacity, fraud, misrepresentation, or duress. It is important to understand these circumstances before entering into any agreement to ensure that both parties are protected and the contract is legally binding.