Which term describes a contract that one of the parties can reject (avoid) based on some circumstance surrounding its execution?

• A. Executed contract
• B. Offer
• C. Void contract
• D. Voidable contract

Answer: (D)

A contract that one party can reject (avoid) due to circumstances surrounding its execution is voidable. This means the contract is valid and enforceable as entered, but one party has the right to rescind or disaffirm it because of issues at formation—such as misrepresentation, fraud, duress, undue influence, or lack of capacity (for example, a minor). If the party with the right to void chooses to disaffirm, the contract is voided. If they affirm it, it becomes fully enforceable.

A fully executed contract is already performed and not typically voidable for rejection based on its execution. An offer is merely an invitation to negotiate, not a binding contract. A void contract is unenforceable from the start, never creating enforceable rights.