Voidable Contract Clause Samples

A voidable contract clause defines circumstances under which one or both parties may choose to either affirm or rescind the contract. Typically, this applies when a contract is formed under conditions such as misrepresentation, undue influence, or lack of capacity, allowing the affected party to decide whether to proceed or withdraw. The core function of this clause is to protect parties from being bound by agreements that were not entered into freely or fairly, thereby ensuring fairness and remedying situations where consent was compromised.
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Voidable Contract. According to sec.2(i) “ An agreement which is enforceable by law at the option of one or more parties, but not at the option of other or others is a voidable contract.” Generally a contract becomes voidable when the consent of one of the parties to the contract is obtained by coercion, undue influence or misrepresentation. For example, if the consent of the party was caused by coercion the contract is enforceable at the option of the party whose consent was not free.
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Voidable Contract. An agreement that is legitimate yet that can be pronounced invalid in line with one of the gatherings as a result of a deformity or illicitness in making it. For instance, on the off chance that one gathering made a false deception on which the other party depended in making the agreement, the agreement will be implemented against the distorting party yet the other party may look for alleviation by choosing for void the agreement. Voidable contract is a type of contract which is legal and valid. However, in case voidable contract only one party can exercise the power of legitimate. If one party reject the offer then it contract become invalid and unlawful. Moreover, voidable is a term typically used with respect to a contract that is valid and binding unless avoided or declared void by a party to the contract who is legitimately exercising a power to avoid the contractual obligations. Voidable contract is a type of formal agreement which is in between two parties. If there is absent of mutual consent then it became invalid contract. Voidable contract is type of valid contract and agreement which may become unenforceable in the court of law by one of the party. If any one party deny to accept the terms and condition of the contract then contract become voidable under the court of law. In most of the cases it is seen that at initial level the contract is valid but it’s become voidable due to presence of misunderstanding, coercion and so on which make the contract unenforceable under the court of law by one party. There are various kind/ type of contract according to the court of law. Some contract are illegal and hence unenforceable in the court of law. Whereas there are some contract and agreement which are enforceable in the court of law. In order to make the contract enforceable in the eyes of law a contract must have essential elements present in its. Flowing are the types of Contract
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Voidable Contract. This is a contract which is valid unless and until the party entitled to void it actually does. It is a binding contract hut may be rejected by the third party.
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Voidable Contract. A voidable contract is one that can be affirmed or rejected at the option of one of the parties. Voidable contract is one that is void as to the wrongdoer but not void as to the party wronged, unless that party elects to treat it as void. A voidable contract is a contract which is valid and capable of producing the results of a valid contract, but which may be avoided.
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Voidable Contract. In case of voidable contract, contract becomes voidable in nature when the consent is not free.
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Voidable Contract. If unilateral mistake is caused by fraud etc on the part of other party, the contract is voidable and can be avoid by the injured party.
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Related to Voidable Contract

  • FRAUDULENT TRANSACTIONS 1. If the Cardmember commits or attempts to commit any fraudulent transaction of any nature as determined by AEME, or applicable laws, AEME has the right to immediately cancel the Card in addition to any other legal action available by law. The Cardmember shall be fully liable for all amounts and damages of any nature that AEME, Service Establishments or third parties may sustain because of his or her fraudulent acts. AEME shall have the right to and is hereby authorized to file complaints and reports on behalf of the Cardmember and to provide information about the Card, Account or Transactions to any competent court, or regulatory or government authority and to participate in any investigation of fraud. 2. If the Cardmember uses his or her Card in compliance with the provisions of this Agreement to pay for goods or services offered online over the internet on websites which display the “Online Fraud Protection Guarantee” logo, the Cardmember shall not be liable for any fraudulent Unauthorized Transaction made on his or her Card unless the Cardmember fails to notify AEME of such fraudulent Transaction within 30 days from the date of receipt of the Statement of Account where such fraudulent Transaction appears.

  • fraudulent misrepresentation No party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any party who was not guilty of such fraudulent misrepresentation.

  • Fraudulent Transfer (a) Each Loan Party is Solvent. (b) No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party.

  • Solvency; Fraudulent Conveyance CAC is solvent, is able to pay its debts as they become due and will not be rendered insolvent by the transactions contemplated by the Basic Documents and, after giving effect thereto, will not be left with an unreasonably small amount of capital with which to engage in its business. CAC does not intend to incur, or believes that it has incurred, debts beyond its ability to pay such debts as they mature. CAC does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official to manage or control any of its assets. The amount of consideration being received by CAC upon the sale or other absolute transfer of the Conveyed Property to Funding constitutes reasonably equivalent value and fair consideration for the Conveyed Property. CAC is not transferring the Conveyed Property to Funding with any intent to hinder, delay or defraud any of its creditors.

  • Fraudulent Claims If any claim under this Agreement is in any respect fraudulent, all benefits payable and/or paid in relation to that claim shall be forfeited and if deemed appropriate, recoverable, respectively.