A voidable contract is a formal agreement between two parties that may be rendered unenforceable for any number of legal reasons, which may include: Failure by one or both parties to disclose a material fact. A mistake, misrepresentation, or fraud. Undue influence or duress.

Which is an example of a voidable contract?

An example of a voidable contract is one involving a minor. ... There are other parties who cannot enter into a legally binding contract either, including someone who lacks the mental capacity or is intoxicated or on drugs at the time the contract was drafted.

What causes a contract to be voidable?

A contract may be rendered voidable if: Any party was under duress, undue influence, or was being intimidated, coerced, or threatened when entering into the agreement; Any party was mentally incompetent (i.e., mentally ill, below the age of majority, etc.)