Fraud

In contracts, 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.

A contract may be voidable on the grounds of:

  • Fraud
  • Mistake
  • Misrepresentation
  • Lack of capacity
  • Duress
  • Undue Influence
  • Abuse of a fiduciary relationship

For this week’s discussion board address the following:

  1. Should we allow for voidable contracts? Why or why not?
  2. From the list above, provide an example scenario for one (not all) of the listed grounds. For example: Duress: Max tells Rhonda that he will kidnap Rhonda’s children if she does not enter into the contract. Rhonda signs it, but later wants to get out of it. This will be a voidable contract based on duress.
  3. From the list above, add another reason that you think should be ground to make a contract voidable and explain why it would be a good addition.

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