An agreement which is not enforceable by law is a voidable agreement. This means that the agreement is not legally binding and therefore, can be cancelled or voided by either party involved in the agreement. In order to fully understand the concept of a voidable agreement, it is important to first understand what makes an agreement enforceable.
For an agreement to be enforceable by law, certain legal requirements must be met. These requirements include the presence of an offer, acceptance of the offer, consideration (usually in the form of payment), competency of the parties involved, and the presence of a legal purpose. If any of these elements are missing, the agreement may not be legally binding.
A voidable agreement, on the other hand, may have all these elements present, but still, the agreement may not be legally binding due to certain circumstances. These circumstances may include fraud, undue influence, coercion, misrepresentation, or mistake. In such a case, an agreement which may have initially seemed valid and enforceable, may be rendered voidable due to the presence of these factors.
For instance, if an agreement is entered into based on fraudulent representations, the aggrieved party may choose to void the agreement. This is because the party was misled into entering an agreement that they would not have entered if they had known the truth. Similarly, if an agreement was entered into due to coercion, the party that was coerced may void the agreement since they did not agree to it freely or willingly.
It is important to note that a voidable agreement is not automatically voided but the party that wishes to cancel the agreement is obligated to take action within a specific period of time. Failure to void the agreement during the specified time period may result in the agreement becoming enforceable.
In conclusion, an agreement which is not enforceable by law is a voidable agreement. This means that while the agreement may have all the necessary legal requirements, there are factors present that may render the agreement voidable. It is important to have a clear understanding of the legal requirements for enforceable agreements and to be aware of the specific circumstances that may make an agreement voidable. This knowledge can help to ensure that any agreements entered into are legally binding and enforceable.