Louisiana Bail Bonds Practice Exam

What does it mean if a contract is voidable?

1. It is not binding

2. It can be enforced or voided.

3. It is automatically nullified

4. It can only be voided by the state

The correct answer is: It can be enforced or voided.

A contract being voidable means that it is valid and binding on the parties involved, but one of the parties has the right to choose to void it. This typically arises in situations where one party lacks the capacity to enter into a contract, such as minors or individuals under duress or fraud. In such cases, the aggrieved party has the option to either affirm the contract and enforce it or reject it and render it void, hence the term "voidable." The choice lies with the party who is entitled to void the contract, which distinguishes it from a void contract that is no longer enforceable by either party from its inception. This principle is crucial in understanding contract law, as it provides individuals protection in circumstances where they may have entered into an agreement under less than fully voluntary conditions.