What does a voidable contract allow?

A voidable contract allows one party to void or cancel the agreement at their discretion, while the other party remains bound by its terms unless the contract is voided. This characteristic is critical because it provides protection for parties who may have entered into the contract under certain conditions that could render it unfair or unenforceable for them. For example, if one party was coerced into signing or if there was a misrepresentation of material facts, that party has the legal right to void the contract.

The other options do not accurately represent the nature of a voidable contract. While some aspects of contracts involve mutual agreement or binding conditions, the defining feature of a voidable contract is the unilateral right to cancel held by one party, which distinguishes it from other types of agreements.