A contract that may be set aside by at least one of the parties is known as what?

A contract that may be set aside by at least one of the parties is referred to as "voidable." This means that one party has the option to affirm or reject the contract based on certain conditions or circumstances, allowing them to cancel it if they choose. Common scenarios that lead to a contract being voidable include instances of misrepresentation, undue influence, duress, or if one party was a minor at the time of the agreement.

In contrast, an implied contract arises from the actions or conduct of the parties rather than a formal written document, which does not pertain to the ability to set it aside. Conditional contracts involve agreements that depend on the occurrence of a particular event, affecting their enforceability but not defining the right to void the contract in the same way. Executed contracts are those that have been fully performed by both parties, meaning there is no option to set them aside since the obligations have already been fulfilled. Thus, the term “voidable” clearly identifies the characteristic of allowing one party the ability to rescind the agreement.