Voidable Contract Optional Avoidance Right

Definition: A contract that is valid and enforceable until one party exercises the right to avoid it. Unlike a void contract, a voidable contract may be ratified by the party with the right to avoid, making it fully enforceable.

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FL Voidable Contract: Optional Avoidance Right

FL optional avoidance: only the defrauded/duressed/minor/incapacitated party can choose to enforce or avoid. Other party bound regardless. Exercise: written notice (grounds, intent, demand return), other agrees or lawsuit (rescission + restitution + damages). Act promptly and in good faith. Waiver: ratification (affirm, continue performing, accept benefits, delay), estoppel, and third-party reliance (may limit to damages). Court balances equities. Right is personal (guardian can exercise).

The Right

Exercise

Waiver

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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC

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