capable of being later annulled. A voidable act remains valid unless or until the defect in the transaction has been effectively asserted or judicially ascertained and declared.
contract that can be annulled by either party after it is signed because fraud, incompetence, or another illegality exists or because a right of rescission applies.
capable of being voided, but not void unless action is taken to void it. A contract to real estate entered into by a minor is voidable only by the minor.
Example: A landlord leases an apartment to a minor. The minor may honor the lease and rent the apartment. However, should the minor decide not to rent the apartment, he may void the lease without liability for performance. The lease is a voidable contract.
