What type of contract exists when at least one party has the option of canceling it?

What type of contract exists when at least one party has the option of canceling it?

1. voidable
2. unenforceable
3. bilateral
4. void

Answer: 1.voidable

An avoided contract is a type of contract in which at least one party possesses the possibility of reaching the end of the contract or annulling it under certain conditions. It thus implies that the contract is legally enforceable at the incidence of entering into the contract and parties have the option of either rescinding or avoiding as the case may be should certain circumstances arise. Some of the circumstances under which a contract may be voidable include where there was misrepresentation or fraud by one of the parties, where a party entered into the contract under coercion and pressure, or where a party to the contract cannot contract. The party that has the right to avoid the contract can elect to renounce the contract and go on with the contract agreement or deny the contractual agreement and treat the same as never existing.