When Is a Contract Voidable or Annulable? Example
Contracts are binding agreements between two or more parties, which can be oral or written. However, not all contracts are enforceable under the law. There are certain instances where a contract can be voidable or annulable due to different reasons.
A voidable contract is a legal agreement that can be challenged due to the lack of capacity, consent, or legal object. In contrast, an annulable contract is a legal agreement that can be canceled or voided by the court due to a legal defect, such as fraud or duress.
To better understand what makes a contract voidable or annulable, let us take a look at some examples.
Example of a Voidable Contract
Suppose you are selling a house, and a potential buyer offers you a contract that contains terms that are not in your favor. You may feel pressured to sign the contract due to the urgency of selling the property, even though you are not comfortable with some of the clauses.
In this situation, the contract is voidable since you did not have the full capacity to enter into the agreement willingly. You were forced to sign the contract because you felt coerced by the circumstances, which made it impossible for you to give your full consent.
Example of an Annulable Contract
Suppose you are renting a house, and the landlord offers you a lease agreement that contains false information about the property`s condition. The landlord may promise you that the house is in perfect condition, but upon inspection, you discover that there are several defects that make the property uninhabitable.
In this situation, the landlord committed fraud by providing false information about the property`s condition, which makes the lease agreement annulable. You have the right to ask the court to cancel the contract due to the landlord`s deceit.
Conclusion
Contracts are essential legal agreements that regulate the relationship between parties. However, not all contracts are enforceable under the law. The law recognizes that there are certain situations where a contract can be voidable or annulable due to different reasons, such as lack of capacity, consent, legal object, or legal defect.
It is imperative to understand the circumstances that can make a contract voidable or annulable to protect your rights and prevent potential legal disputes. If you are in doubt about the validity of a contract, it is always best to seek legal advice to avoid any legal consequences.