Contracts

A Minnesota purchase agreement that is 'voidable' means:

AThe contract is automatically invalid
BOne party has the right to cancel the contract due to a legal defect such as fraud or incapacity✓ Correct
CNeither party can enforce the contract
DThe contract requires court approval to be valid

Explanation

A voidable contract is one that appears valid but may be cancelled by one party due to a legal defect — such as fraud, misrepresentation, undue influence, or a party's lack of capacity (such as a minor).

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