Also known as: voidable contract · voidable agreement · voidable
Written by attorneys · grounded in primary & secondary sources — see below
A contract validly formed but subject to avoidance at the election of a party whose assent was defective due to lack of capacity, mistake, misrepresentation, duress, or undue influence.
Vanessa Vega and Vitality Foods signed a purchase agreement for farmland both believed contained only timber. After closing Vanessa discovered rich mineral deposits that doubled the land's value. The mutual mistake about a basic assumption materially altered the exchange. Vanessa may avoid the contract and recover the property.
Vincente Vukovic as trustee sold trust real estate to a company he controlled at below-market price. Beneficiary Violet Vang discovered the conflict and the personal benefit to Vincente. The transaction involved trust property and a fiduciary-personal conflict. Violet may avoid the sale and restore the property to the trust.
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Victoria Vernon signed a deed conveying family land while under a court-appointed conservatorship that required guardian approval. The buyer Valor Capital recorded the deed without checking authority. The signature came from an unauthorized person. The deed is voidable by the conservator.
Seventeen-year-old Virgil Vaughn gave a valuable painting to his aunt Valerie Voss. After turning eighteen Virgil decided to reclaim the painting within a reasonable time. The gift was made while Virgil lacked capacity as a minor. Virgil may disaffirm the transfer and recover the artwork.
Estate administrator Vivid Media bought estate equipment for itself at a below-market price without court approval. Heir Vega Motors learned of the self-dealing and substantial conflict. The transaction affected estate property and involved the representative's personal interest. Vega Motors may avoid the sale.
Seller Violet Vang told buyer Vincente Vukovic that a used car had never been in an accident. Vincente relied on the statement and paid full price. The car had in fact been totaled and repaired. Vincente may avoid the contract and recover his payment.
A contract is voidable when one party possesses a power of avoidance due to defective assent from lack of capacity, mutual mistake, misrepresentation, duress, or undue influence, while the contract remains valid until that party elects to rescind.
When both parties share a mistaken belief about a basic assumption at formation and the mistake materially affects the exchange, the adversely affected party may avoid the contract unless that party bears the risk of the mistake.
A beneficiary may avoid a sale or other transaction involving trust property when the trustee acts for personal account or under a fiduciary-personal conflict unless the trust terms authorized the deal or a court approved it after disclosure.
A minor lacks capacity to make a gift so the transfer is voidable. The minor may disaffirm before majority or choose to disaffirm or ratify within a reasonable time after reaching majority.
When one party's assent is induced by the other party's fraudulent or material misrepresentation and reliance is justified, the recipient may avoid the contract.
…ex rel. Williamson , 316 U. S. 535, 541 (1942). Marriages of the retarded were made, and in some States continue to be, not only voidable but also often a criminal offense.[^maj-38] The purpose of such limitations, which frequently applied only to women of child-bearing age, was unabashedly eugenic: to prevent the retarded…