A voidable contract is a legal agreement that is considered binding but can be legally voided or cancelled by one or both of the parties involved due to certain circumstances. Such circumstances can include fraud, misrepresentation, undue influence, duress, or a lack of legal capacity.
One example of a voidable contract is a contract signed by a minor. In most jurisdictions, minors are not legally allowed to enter into contracts because they lack the legal capacity to do so. A contract signed by a minor is considered voidable, meaning the minor has the right to cancel or void the contract at any time before they reach the age of majority.
This is because minors do not have the same legal responsibilities and obligations as adults. A minor may lack the ability to understand the terms of the contract, the nature of the agreement, or the consequences of the agreement. As such, the law recognizes that they can be easily taken advantage of in a contractual agreement, and therefore, offers them protection by making the contract voidable.
However, upon reaching the age of majority, a minor can choose to ratify or accept the contract, thus making it legally binding and enforceable. They can also choose to void the contract before reaching the age of majority, or within a reasonable time after they have reached the age of majority, if they believe that they were unfairly treated or if they were misled into signing the contract.
In conclusion, contracts signed by minors are a prime example of voidable contracts. While minors may enter into contracts, they lack legal capacity, and therefore, they hold the right to cancel or void the contract at any time before they reach the age of majority. In this way, the law offers protection to minors who may be at risk of being taken advantage of in contractual agreements.