Contracts & ExecutionQuestion 860 of 1632

A 'voidable' contract differs from a 'void' contract in that a voidable contract:

a.Is valid until the party entitled to disaffirm elects to do so
b.Has no legal effect at all from the moment it was made
c.Can never be enforced by any party, against anyone, at any time
d.Must be put in writing to have any effect between the parties

Explanation

A voidable contract is a real, enforceable contract that one party has the power to disaffirm — for minority, fraud, duress, menace, undue influence or mistake, the grounds listed in Civil Code §1567 — and it stays in force until that party elects to rescind under Civil Code §1689. (b) describes a VOID contract, which has no effect from the outset, typically because its object is unlawful or impossible (Civil Code §1598, §1667). The difference matters because only a voidable contract can be ratified and then enforced. (c) states the consequence of voidness, not voidability, and misses that the party without the power to disaffirm stays bound throughout. (d) confuses voidability with the Statute of Frauds; an oral contract can be perfectly valid and a written one perfectly voidable.

Law Reference: Civil Code §1567, §1598, §1667, §1689

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