What characterizes a voidable contract?

A voidable contract is characterized by its ability to be affirmed or rejected at the discretion of one of the parties involved. This means that if one party experiences an injury, whether physical, emotional, or financial, they have the legal right to rescind the contract, making the contract voidable rather than void. The contract remains valid and enforceable until the affected party decides to exercise their right to withdraw.

For example, if a person enters into a contract under duress or as a result of misrepresentation, they may later choose to void the contract once they recognize the injury that occurred. This characteristic provides a crucial protection for individuals who may be at a disadvantage during the contracting process, ensuring that they can back out of arrangements that are fundamentally unjust or harmful.

Other options provided do not accurately define a voidable contract. A voidable contract is not necessarily illegal, nor does it imply that it has not been created or lacks a written agreement. Therefore, understanding that a voidable contract grants the option to withdraw under specific conditions is key to recognizing its importance in legal and real estate contexts.