In what situation can a voidable contract be declared invalid?

A voidable contract is a valid agreement that can be enforced but may also be declared invalid at the discretion of one of the parties involved, typically due to circumstances that affect the consent of that party. This discretion allows the party who is entitled to void the contract to decide whether to continue to be bound by it or to terminate it.

Several factors can render a contract voidable, such as misrepresentation, undue influence, fraud, or a lack of capacity (e.g., if a party is a minor or mentally incapacitated). In these scenarios, the aggrieved party has the option to affirm the contract or rescind it, depending on their preference and the specific circumstances.

The other options do not adequately reflect the nature of voidable contracts. Mutual agreement to declare a contract invalid may occur, but it is not a defining characteristic—it does not capture the unilateral right to void that one party has. The idea that a contract can only be declared invalid upon breach by both parties misinterprets the concept of voidable contracts, as these agreements are typically still valid until one party chooses to exercise their right to void them. Additionally, stating that a voidable contract is only declared invalid when recorded in writing misrepresents the nature of such agreements,