What makes a contract voidable?

A contract is considered voidable when circumstances exist that allow one or both parties to cancel or annul the agreement. The presence of duress or undue influence directly affects a party's ability to consent freely to the contract terms. Duress involves threats or coercion that force an individual to enter into a contract against their will. Undue influence occurs when one party takes advantage of a position of power over another party, impacting their decision-making capacity. These factors undermine the voluntary nature of mutual consent, leading to the contract being voidable.

Other options do not correctly define what makes a contract voidable. A lack of signed documents may lead to a contract being unenforceable but does not characterize it as voidable. Contracts that are unclear or ambiguous could pose complications in interpretation but do not inherently make them voidable without the context of how those ambiguities affect consent. Similarly, a failure to follow legal procedures could render a contract void or unenforceable, rather than voidable, as it implies that the contract cannot stand legally, rather than allowing for one party to rescind the contract.