What distinguishes a voidable contract?

A voidable contract is a type of agreement that remains valid and enforceable until one of the parties involved chooses to annul or void it. This characteristic sets it apart from other types of contracts. The key aspect of a voidable contract is that one party has the option to withdraw from the agreement due to specific circumstances, such as misrepresentation, undue influence, or breach of duty.

For example, if a party entered a contract under duress or without understanding the implications, that party has the right to declare the contract void, thus allowing them to escape any legal obligations from it. Until that decision is made, the contract is fully functional and binding, which highlights the distinction of being valid until one party declares it void.

The other options do not accurately define the nature of a voidable contract. A voidable contract is, in fact, valid—not invalid—until it is properly voided by one party. It does not inherently lack consideration; in fact, a contract must have consideration to be valid, albeit potentially voidable. Furthermore, while some contracts might need to be in writing to be enforceable, a voidable contract does not have this requirement as a defining trait.