Voidable Contract
A voidable contract can start out as a valid contract and later become voidable. This happens because one party to the contract, through no fault of his own, is unable to perform. For example, if you enter into a contract to sell a boat and a hurricane destroys the boat, you can no longer supply the boat, so either you or the buyer can void the contract due to the impossibility of performance. A voidable contract is binding on one party but the other party can decide whether to void or ratify the contract. For example, a minor signs a contract for the gym several days before his birthday. As the contract was entered into while he was a minor, the gym must provide the membership if he desires, although if the minor chooses he can void, or cancel, the contract without penalty. However, the minor can also ratify, or accept, the gym contract once he becomes of age, making this a valid contract.