What is a voidable contract?

A voidable contract refers to an agreement that one party has the option to either enforce or void, depending on specific circumstances or conditions stipulated within the contract or established by law. This typically occurs when one party enters into a contract under certain conditions that give them the right to rescind the agreement, such as misrepresentation, undue influence, or the ability to back out due to mental incapacity or being a minor.

Understanding this concept is important in real estate transactions, as it can impact the enforceability of agreements and the rights of the parties involved. In contrast, the other options describe concepts that do not accurately reflect the essence of a voidable contract. For example, a contract that must be fulfilled immediately suggests urgency, while a contract that is always enforceable denotes stability and certainty, which is opposite to the nature of a voidable contract. Similarly, a contract that is temporarily inactive does not capture the inherent flexibility of a voidable agreement, where the choice to void lies with one party under specific circumstances.