Voidable Contract
/ˈvɔɪdəbəl ˈkɒntrækt/
Contract Law Term
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Definition
A contract that is valid and binding unless the aggrieved party elects to avoid (rescind) it. Under Section 2(i) of the Indian Contract Act, 1872, it is enforceable at the option of one or more parties. Contracts induced by coercion (Section 15), undue influence (Section 16), fraud (Section 17), or misrepresentation (Section 18) are voidable at the option of the party whose consent was not freely given.
Examples
Case Study
The Privy Council in Wajid Khan v. Raja Ewaz Ali Khan (1891) held that a transaction by a grantor of advanced age influenced by his confidential agent was voidable for undue influence — establishing the presumption of undue influence in fiduciary relationships in Indian law.
Key Cases
Wajid Khan v. Raja Ewaz Ali Khan
1891(1891) 18 IA 144 (PC)
Established presumption of undue influence in fiduciary relationships. Transaction voidable for undue influence where dominant party takes unconscionable advantage. Early foundational authority on Section 16 Contract Act.
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