voidable contract

Section 2(i) of the Indian Contract Act, 1872 defines a voidable contract as an agreement enforceable by law at the option of one or more parties but not at the option of the others. Contracts induced by coercion, undue influence, fraud or misrepresentation are voidable at the option of the party whose consent was so obtained (ss.19 and 19A).

Until it is avoided, a voidable contract is valid, and a third party who acquires rights in good faith before rescission is protected. The aggrieved party may rescind or affirm it; on rescission, benefits must be returned (s.64). A void agreement, in contrast, never had legal effect.

Example

The sale induced by fraud was a voidable contract, so a bona fide purchaser who bought before rescission got good title.

In Indian law

• Sections 2(i), 19, 19A and 64, Indian Contract Act, 1872

See also

void agreement · free consent · rescission · fraud

Read more in the study notes

• Rule of law and droit administratif (Administrative Law)
• Reasoned decisions, exceptions to natural justice, effect of breach and Article 136 (Administrative Law)
• Administrative discretion and its judicial review (Administrative Law)
• Phases of negotiation, qualities of a negotiator and power to negotiate (Alternative Dispute Resolution Systems)
• Kinds of accounts, opening an account, and special classes of customers (Banking Law)
• Relevance of judgments of courts (sections 34 to 38) (Bharatiya Sakshya Adhiniyam)