How is a voidable contract typically characterized in legal terms?

A voidable contract is characterized as binding but cancelable under certain conditions. This means that while the contract is initially valid and enforceable, one party has the right to revoke it due to specific circumstances that may affect their ability to fulfill the agreement. For example, if one party was misled or coerced into entering the contract, they may have the option to void it. This characteristic distinguishes voidable contracts from void contracts, which are not valid from the outset and have no legal effect. Thus, in the context of legal obligations, the essential feature of a voidable contract is its potential for cancellation based on the circumstances surrounding its creation.