Voidable, in law, is a transaction or action that is valid but may be annulled by one of the parties to the transaction. Voidable is usually used in distinction to
void ''ab initio'' (or void from the outset) and
unenforceable.
Definition
The act of invalidating the contract by the party exercising its rights to annul the voidable contract is usually referred to either as ''voiding'' the
contract (in the United States and Canada) or ''avoiding'' the contract (in the United Kingdom, Australia and other
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
countries).
''
Black's Law Dictionary'' (relevant to US law) defines voidable as follows:
Right to rescind
Generally speaking, one party will have the right to elect whether to annul the transaction or to affirm it. The avoiding of a voidable transaction amounts to the rescinding it or exercising a power of rescission and as such, it is subject to the general law in that regard.
The right to rescind can be lost. In
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
, there are generally said to be four "bars" to rescission, any one of which will cause the agreement to no longer be considered voidable:
# delay
# affirmation (or ratification)
# ''
restitutio in integrum'' being impossible
# third party rights
Although the law varies from country to country, most disputes relating to whether a transaction is void or voidable turn on the ability to transfer title to goods. In many jurisdictions, if a transaction is valid, but voidable, title to good still passes under the transaction, and the recipient may sell them with good title. If the transaction is void, no title passes, and the original seller may reclaim the goods.
[See for example under English law, ''Cundy v Lindsay'' (1878) 3 App Cas 459 (described more fully in void (law)).]
See also
*
Per minas
*
Voidable marriage
*
Voidable contract
*
Void (law)
Footnotes
References
C. Stephen Bigler, ''Void or Voidable? -- Curing Defects in Stock Issuances Under Delaware Law'', 63 Business Lawyer 1109 (2008) (peer reviewed).
Contract law
Legal terminology
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