Contracts

A Colorado real estate contract is 'voidable' when:

AThe contract was never legally formed
BOne party has the legal right to rescind or cancel the contract due to factors like misrepresentation, fraud, or lack of capacity✓ Correct
CThe contract contains a typographical error
DThe contract must be approved by the MLS

Explanation

A voidable contract is legally formed but may be rescinded by one party who has grounds to do so (e.g., misrepresentation, fraud, undue influence, lack of legal capacity, or failure of a condition). A void contract has no legal effect from the start.

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