Louisiana Bail Bonds Practice Exam

What typically happens to a contract that is voidable?

1. It is automatically voided

2. It can be enforced or rejected

3. It is considered valid forever

4. It requires court intervention

The correct answer is: It can be enforced or rejected

A contract that is voidable means that while it is valid and enforceable at first, one party has the right to affirm or reject it due to particular circumstances that may affect its validity, such as misrepresentation, undue influence, or coercion. This means that the affected party can choose to either uphold the contract and proceed with its terms or opt to cancel it altogether, making it unenforceable to the other party. The option indicating that a voidable contract can be enforced or rejected accurately describes this characteristic. Since the party with the option retains the power to decide, the contract remains valid until that decision is made. The flexibility provided by this type of contract ensures that the party impacted by an underlying issue has the ability to remedy their situation. In contrast, other choices imply different conditions: for example, saying it is automatically voided overlooks the fundamental nature of a voidable contract, which allows for potential enforcement. Similarly, the idea that it remains valid forever misrepresents the control the affected party has, as it can eventually be rejected. Suggesting that court intervention is always necessary also misrepresents the situation, as not all voidable contracts require legal action; the party can often choose to resolve the matter privately based on their decision