Discuss Voidable Contract with Example

September 28, 2023

Voidable contracts are agreements that are initially considered valid, but one party has the option to void or cancel the contract. This typically occurs when one party was under duress or lacked capacity to enter into a contract. In this article, we’ll discuss what voidable contracts are and provide an example to help you better understand how they work.

What Is a Voidable Contract?

A voidable contract is a legal agreement that one party has the right to cancel or void because of certain circumstances. These circumstances may include undue influence, duress, misrepresentation, or mistake. While the contract is considered valid when it is created, one party has the option to void it if they discover that the other party misrepresented themselves, or if they entered into the agreement under duress, or if they were not of sound mind when the contract was created.

Example of a Voidable Contract

To better understand how a voidable contract works, let’s take an example. Imagine that you are purchasing a car from a dealership. You sign a contract with the dealership that states you will pay $20,000 for the car within a year. However, after a week, you realize that the car has a lot of defects that were not disclosed at the time of sale. You also discover that the cost to repair these defects would be around $5,000.

In this scenario, the contract you signed with the dealership is voidable because the dealership did not disclose the defects in the car. You can argue that you would not have entered into the contract if you had known about the defects, and that because of the dealership’s misrepresentation, you are unable to fulfill the contract. Therefore, you have the option to void the contract, and the dealership would need to refund you the money you paid for the car.


In conclusion, voidable contracts are agreements that may be canceled or avoided under certain circumstances. These contracts are considered to be valid when created, but they can be voided if one party discovers that the other party misrepresented themselves or if they entered into the agreement under duress. It is essential to thoroughly understand all the terms and conditions of a contract before signing it, and to take legal action if necessary to protect your rights.