Also known as:voidability · avoidable · rescindable
Written by attorneys · grounded in primary & secondary sources — see below
A transaction or instrument that remains valid until a party with the power to avoid it elects to do so. The power arises from defects such as mutual mistake, lack of capacity, unauthorized execution, or fiduciary conflict, and the affected party may affirm or disaffirm within the applicable time limits.
Sources & Authorities
How it applies
Common Examples
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Mutual Mistake Over Land Value
Valerie Voss and Vanguard Bank signed a purchase agreement for a parcel both believed contained only timber. After closing, they learned the parcel held valuable mineral rights that doubled its worth. Voss, the adversely affected party, elects to avoid the contract on the ground of mutual mistake.
Trustee Self-Dealing Sale
The trustee of the Vaughn Family Trust sold trust real estate to a corporation in which the trustee held a controlling interest. Beneficiary Vivian Vaughn learns of the transaction and elects to avoid the sale because it was affected by the trustee's conflict of interest.
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Cases
Uniform Acts
Model Codes
Common Law
Restatements
Casebooks
Course Outlines
Study Supplements
Dictionaries
Veronica Villanueva's attorney-in-fact signed a deed conveying her ranch without a valid power of attorney. The grantee later conveyed the ranch to a third party. Villanueva elects to avoid the original deed because the attorney-in-fact lacked authority to execute it.
Fraudulent Misrepresentation In Sale
Victor Vale purchased a used printing press from Vendor Solutions after the seller falsely stated the machine had never been repaired. Upon discovering prior repairs that materially reduced value, Vale elects to avoid the contract because his assent was induced by the seller's fraudulent misrepresentation.
Minor's Gift Of Artwork
Sixteen-year-old Veronica Varela gave her valuable painting collection to her cousin. Upon reaching majority, Varela elects to disaffirm the gift and demands return of the paintings rather than ratifying the transfer.
Personal Representative Self-Dealing
The personal representative of Vincente Vukovic's estate sold estate farmland to a corporation in which the representative held a substantial interest. An heir who did not consent after full disclosure elects to avoid the sale under the conflict-of-interest rule.
Common questions
Frequently Asked
4
How does a voidable contract differ from a void contract?+
A voidable contract remains valid and enforceable until the protected party elects to avoid it. A void contract is invalid from the outset and confers no rights even on a good-faith purchaser.
Supporting sources
When must a minor disaffirm a voidable gift to avoid ratification?+
A minor may disaffirm a gift before reaching majority. After reaching majority the minor must disaffirm within a reasonable time or the failure to act constitutes ratification.
Supporting sources
What must a beneficiary show to avoid a trustee's self-dealing transaction?+
The beneficiary need only show the transaction involved trust property and was affected by a conflict between the trustee's fiduciary and personal interests. The transaction is then voidable unless the trust terms or court approval authorized it.
Supporting sources
Does execution of a deed by an unauthorized person always render title unmarketable?+
Execution by an unauthorized person renders the deed void or voidable. A subsequent bona-fide purchaser may still acquire good title if the original deed is merely voidable rather than void.
Supporting sources
557 P.2d 106 (Cal. 1976)Property
…defendant's argument fails for the reason that an improper transfer of community property is not void ab initio, but merely voidable at the instance of the aggrieved spouse. See Ballinger v. Ballinger (1937) 9 Cal.2d 330, 334 [70 P.2d 629]; Trimble v. Trimble (1933) 219 Cal. 340, 344 [26 P.2d 477].) In the…