A contract that is valid but unenforceable if rejected by one party is called what?

• A. void
• B. voidable
• C. validated
• D. unvoidable

Answer: (B)

A voidable contract is valid and enforceable as to the parties, but one party has the right to cancel it. This happens when there’s something about the consent or capacity of one party (such as misrepresentation, duress, lack of capacity, or a minor’s assent) that gives that party the option to disaffirm the contract. Because of that defect, the contract remains enforceable unless that party chooses to void it. If the party with the right to void disaffirms, the contract becomes unenforceable for them, and the parties are typically restored to their pre-contract positions.

This differs from a void contract, which is unenforceable from the start because it lacks a legal basis or essential element. It also isn’t called validated in standard practice, and an unvoidable contract is one that cannot be voided, which is the opposite situation.