Under what circumstances can a contract be considered voidable in Texas?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

A contract can be considered voidable in Texas under specific circumstances that often involve issues related to the parties' ability to consent to the agreement. The correct circumstances that qualify for a voidable contract include situations where one party lacks the capacity to contract, such as minors or individuals declared mentally incompetent. Additionally, if one party was induced to enter the contract through fraud, which means they were misled or deceived regarding an essential term, the contract may also be voidable. Lastly, if a party entered into the contract under duress—meaning they were threatened or pressured in a way that stripped them of free will—the contract is deemed voidable.

These conditions reflect the essential principle of contract law that parties must enter agreements freely and with appropriate capacity. As a result, if any of these factors—lack of capacity, fraud, or duress—are present, the disadvantaged party has the right to void the agreement instead of being bound by its terms. This protects individuals from being forced into agreements or being misled about significant aspects of a contract.

In contrast, agreements reached through mutual consent to revise terms typically result in a new contract but do not alone provide grounds for voidability. Similarly, contracts that are not signed by all parties may raise enforce

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