Voidable Contract

A voidable contract under Section 2(i) of the Indian Contract Act, 1872, is an agreement that is enforceable by law at the option of one or more of the parties, but not at the option of the others. Unlike void contracts, voidable contracts are initially valid and binding, but one party has the right to either affirm or avoid the contract.

Contracts become voidable primarily due to defects in free consent under Section 14. These include: coercion (Section 15); undue influence (Section 16); fraud (Section 17); and misrepresentation (Section 18). Section 19 provides that agreements without free consent are voidable at the option of the party whose consent was not freely given. Section 19A makes contracts with parties at a disadvantage due to undue influence voidable.

The right to avoid must be exercised within a reasonable time after the aggrieved party becomes aware of the defect. If the party, with full knowledge, affirms the contract through words or conduct, they lose the right to rescind. Under Section 64, when a voidable contract is rescinded, the party rescinding must restore any benefits received.