Voidable Contract Optional Avoidance Right Information
When a contract is voidable: minor's contract (a minor may void most contracts upon reaching the age of majority), fraud (a party induced to enter the contract by fraud may avoid the contract), duress (a party who entered the contract under duress may avoid it), undue influence (a party who entered the contract under undue influence may avoid it), and mutual mistake (in some circumstances: a party may avoid the contract due to a material mistake). Ratification: the party with the right to avoid may: ratify the contract (making it fully enforceable), and ratification occurs when: the party continues to perform after learning of the ground for avoidance, the party expressly affirms the contract, or the minor reaches the age of majority and does not disaffirm. Distinguished from void: a voidable contract is: valid until avoided (one party has the option to cancel), while a void contract is: invalid from the beginning (neither party may enforce it).
Florida Legal Definition
Voidable contracts in Florida are governed by Florida common law. Under Florida case law: a voidable contract is: enforceable until the party with the right to avoid exercises that right. Under Florida practice: a minor may: disaffirm a contract within a reasonable time after reaching the age of majority (returning any consideration still in the minor's possession). Under Florida case law: a party claiming fraud must: prove the fraud by clear and convincing evidence to void the contract. Under Florida practice: ratification of a voidable contract occurs when: the party with the right to avoid takes action inconsistent with avoidance (continuing performance, accepting benefits, or failing to disaffirm within a reasonable time).
How It's Used in Practice
Attorneys manage voidable contract issues. For the avoiding party: exercise the right to avoid promptly (delay may constitute ratification), return any consideration received (to the extent possible), assert the ground for avoidance (fraud, duress, minority, or undue influence), and seek restitution. For the party seeking enforcement: argue the contract has been ratified (the avoiding party continued performance, accepted benefits, or failed to disaffirm), argue the ground for avoidance does not apply, and pursue enforcement as a valid contract. The attorney advises: the right to avoid a voidable contract must be exercised promptly; delay, continued performance, or acceptance of benefits may constitute ratification.
Key Takeaways
- Voidable: valid until party exercises right to avoid.
- Grounds: minority, fraud, duress, undue influence, and mistake.
- May be ratified: making it fully enforceable.
- Distinguished from void (invalid from beginning).
- Exercise avoidance right promptly to avoid ratification.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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