Is Voidable Contract Partly Valid Agreement
When it comes to business agreements, you want to ensure that everything is legally binding and enforceable. However, there may be instances wherein a contract can be challenged or voided by either party involved. This is where the concept of voidable contracts comes into play.
In essence, a voidable contract is an agreement between two parties that can be challenged and deemed invalid by one of the parties. In other words, one party can choose to void the contract based on certain circumstances or conditions.
But what does this mean for the validity of the contract? Is a voidable contract considered a partially valid agreement?
The answer is a bit complicated and depends on various factors. Generally speaking, a voidable contract is not entirely invalid or void from the start. It is only voidable if one party wishes to challenge its validity based on certain grounds specified in the contract or by the law.
For example, if a contract was signed under duress or coercion, the party who was coerced into signing may choose to void the contract. Similarly, if one party misrepresented the terms of the agreement, the other party may choose to challenge it and have it deemed voidable.
In these cases, the voidable contract would only be partially valid, as the party who wishes to challenge it can do so based on the grounds specified in the contract. However, if the contract is not challenged within a certain period, it may become fully binding and enforceable.
It`s important to note that voidable contracts are different from void contracts, which are agreements that are never legally valid or enforceable from the start. Void contracts are usually deemed invalid due to reasons such as illegality, fraud, or lack of legal capacity.
In conclusion, a voidable contract is not a fully valid agreement, as it can be challenged and deemed invalid based on certain grounds. However, if it is not challenged within a certain period, it may become fully binding and enforceable. As always, it`s important to consult with legal professionals to ensure that your business agreements are valid and enforceable.