Which party has the option to set aside a voidable contract?

A voidable contract is a valid contract that can be enforced at the option of one party involved. This means that there exists a legal right for one party to either affirm the contract or set it aside based on certain circumstances, such as misrepresentation, undue influence, or coercion. In this context, the correct answer indicates that either party can choose to set aside the contract, provided they have the grounds to do so.

For example, if one party believes they were misled into entering the contract, they have the right to void it. Conversely, the other party may also have grounds to set the contract aside if they were also subject to coercion or fraud. Hence, the option that allows either party the ability to nullify a voidable contract encompasses the situations that can arise during contractual agreements, reinforcing the mutual rights involved.

Understanding that not only one party but potentially either can act in such circumstances is crucial for grasping the dynamics at play in contract law, particularly as it pertains to the enforceability of agreements in cases of vulnerability or deceit.