Voidable Contract

A voidable contract is legally enforceable but can be canceled by one party due to specific circumstances such as misrepresentation, fraud, coercion, or lack of capacity. Until it is voided, the contract remains valid and binding. This differs from a void contract, which is invalid from the beginning. For startups, understanding voidable contracts is important when entering agreements with vendors, employees, or investors, as certain conditions may allow contracts to be challenged or terminated.