Agreement by Incompetent Parties is called as Voidable Contract
The legal world is full of complex terminology and jargon that can often leave those of us outside of the legal profession scratching our heads. One term that you may have encountered in your reading or research is “agreement by incompetent parties.” This term refers to a situation where two or more parties enter into a contract, but one or more of those parties lack the legal capacity to do so.
So, what happens when an agreement is entered into by incompetent parties? The answer is that the agreement is considered to be a voidable contract. This means that the contract is not automatically void, but rather it is subject to being voided by one of the parties involved.
Incompetent parties can take many forms. For example, a person may lack the legal capacity to enter into a contract if they are a minor, if they are mentally incapacitated, or if they are under the influence of drugs or alcohol at the time the agreement is made.
When a contract is voidable, it means that it can be cancelled or declared invalid. The party who is legally incompetent to enter into the contract can choose to cancel the agreement at any time. This is because the law recognizes that they were not able to fully understand the terms of the contract at the time it was made, and may not have been capable of providing their informed consent.
It is important to note that a voidable contract is not automatically invalid or unenforceable. It simply means that the contract may be cancelled if the legally incompetent party chooses to do so. If the party does not choose to cancel the agreement, then it remains in force and the other parties involved are obligated to fulfill their end of the bargain.
In conclusion, agreement by incompetent parties is called a voidable contract. Such a contract is subject to being cancelled by one of the parties involved if they do not possess the legal capacity to enter into the agreement. As a professional, it is essential to understand these legal terms to ensure that the content is not only grammatically correct but also legally accurate.
