A voidable contract is a type of agreement that is valid and enforceable but can be canceled by one party under certain conditions. This means that while the contract is legally binding, one party has the right to withdraw from it without facing legal consequences. Common reasons for a contract to be voidable include misrepresentation, duress, or the inability of one party to understand the terms due to factors like age or mental capacity. In a voidable contract, the party with the right to void the agreement can choose to either affirm the contract or cancel it. If they decide to affirm it, both parties must fulfill their obligations as outlined in the contract. However, if the contract is voided, it is treated as if it never existed, and both parties are released from their obligations.