A voidable contract is characterized by what feature?

A voidable contract is characterized by the fact that one party has the option to avoid their legal obligations. This means that while the contract is initially valid and enforceable, one of the parties may choose to nullify their obligations under specific circumstances, such as entering into the contract under duress, undue influence, misrepresentation, or if they lacked the capacity to contract (like minors or mentally incapacitated individuals).

This feature distinguishes voidable contracts from void contracts, where no party is bound by the agreement from the outset due to illegality or other factors that make the contract unenforceable. In contrast, a valid contract may still be enforceable, but the party with the ability to void has a specific right that can affect its enforceability. Recognizing this option is essential in contract law, as it gives the affected party leverage to protect their interests and withdraw from agreements that may not have been entered into freely or knowingly.