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What Are the Five Factors That Makes a Contract Voidable

Contracts are legal documents that bind two or more parties to a set of obligations and responsibilities. However, not all contracts are enforceable, and some may be considered voidable under certain circumstances. As a copy editor with SEO experience, I have compiled the five factors that make a contract voidable.

1. Misrepresentation

Misrepresentation occurs when one party provides false information to the other party. This can happen intentionally or unintentionally. For example, if a seller sells a car and claims that it is in good condition when in reality, it has a faulty engine, the contract may be voidable. Misrepresentation can also occur through silence, such as when one party fails to disclose important information.

2. Duress

Duress occurs when one party is forced to enter into a contract through threats, coercion, or physical force. The party may feel that they have no choice but to agree to the terms, making the contract voidable.

3. Undue influence

Undue influence occurs when one party uses their power or status to persuade the other party to enter into a contract that benefits them. For example, a doctor may convince their patient to sign a contract that requires them to visit the doctor regularly, even if they do not need to. This is considered undue influence and may make the contract voidable.

4. Mistake

A mistake can occur when one party misunderstands the terms of the contract. This can happen when the contract language is unclear or ambiguous. If the parties enter into the contract without understanding all the terms, the contract may be voidable.

5. Incapacity

Incapacity occurs when one party lacks the legal ability to enter into a contract. For example, a minor may not have the legal capacity to enter into a contract, and any contract with a minor may be voidable. Similarly, contracts entered into under the influence of drugs or alcohol may be voidable.

In conclusion, contracts are the backbone of the legal system, and it is important to understand the factors that make a contract voidable. Misrepresentation, duress, undue influence, mistake, and incapacity are the five factors that can make a contract voidable. By understanding these factors, individuals can protect themselves from entering into disadvantageous contracts.