Contracts

A Rhode Island purchase contract is 'voidable.' This means:

AThe contract is automatically cancelled
BOne party has the right to rescind the contract, but it remains valid until that right is exercised✓ Correct
CNeither party is bound by the contract
DThe contract is illegal

Explanation

A voidable contract is one that is valid and enforceable but may be rescinded by one party (such as a minor or a party who was defrauded). It remains in force until the party with the right to void it elects to do so.

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