What type of contract can be set aside by at least one of the parties involved?

A voidable contract is one that is valid and enforceable on its face but may be set aside by one or both parties involved due to certain circumstances, such as misrepresentation, fraud, undue influence, or a party's lack of capacity (e.g., being a minor or mentally incapacitated). This means that while the contract is legally binding, one party has the option to void the agreement, often if they believe they were coerced or misled into the contract.

In contrast, other types of contracts do not offer this flexibility. A void contract is never valid or enforceable from the beginning, while a valid contract is fully enforceable unless specific conditions are met. An unenforceable contract, while valid, cannot be enforced in a court of law for reasons like failing to comply with the Statute of Frauds. Therefore, the defining characteristic of a voidable contract allows one party the choice to affirm or reject the agreement based on the circumstances surrounding its formation.