Voidable Transaction
/ˈvɔɪdəbl trænˈzækʃən/
Definitions
- (n.) A transaction that is valid until annulled by a court due to factors like fraud, duress, or incapacity, allowing one party to avoid its effects.
The court declared the contract a voidable transaction because it was signed under duress.
Forms
- voidable transactions
Related terms
See also
Commentary
A voidable transaction differs from a void transaction in that it remains effective until annulled; drafting should clearly state conditions allowing avoidance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.