What is a characteristic of a voidable contract?

A voidable contract is characterized by the ability of one of the parties involved to nullify or cancel the agreement at any time. This means that, although the contract is initially valid and legally enforceable, one party has the legal right to withdraw from the contract if certain conditions are met, such as misrepresentation, threat, undue influence, or a lack of capacity to contract.

The nature of voidable contracts relies on the consent and circumstances surrounding the agreement; therefore, when one party chooses to void it, the contract is rendered unenforceable for that party. This flexibility in terms allows the party that has the right to void the contract the opportunity to protect their interests, especially if they did not enter into the agreement fully understanding its implications or under duress.

In contrast, a void contract is one that is not legally enforceable from the outset, while a binding contract is one that must be upheld regardless of the parties' willingness. The requirement for mutual consent does not define a voidable contract specifically, as this is a general requirement for all contracts.