Final answer:
A voidable contract is a valid contract that can be voided by one party due to certain circumstances such as duress or lack of legal capacity.
Step-by-step explanation:
A voidable contract is a contract that is valid but can be voided by one of the parties involved. This means that although the contract is legally enforceable, one party has the option to declare it void and cancel the obligations outlined in the contract. Voidable contracts occur when one party has been subjected to duress, fraud, undue influence, mistake, or lacks legal capacity.
For example, if a person signs a contract under duress, meaning they were coerced or threatened into signing, they have the option to void the contract if they can prove the duress. Another common example is when a minor enters into a contract, as they lack legal capacity, they usually have the right to void the contract.
However, it's important to note that the other party involved in the contract may still enforce the contract as long as they have not been informed of the intent to void it or if they have acted in reliance on the contract.