When is a contract voidable?

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When is a contract voidable?

I performed service for a client and he wanted a refund because he wasn’t satisfied with the service. I gave him the refund and made him sign a contract in which one of the terms were that we are not to discuss this transaction with any outside parties. I later find out that he provided me false information and I decide to take him to court and sue him for damages. The way I am going to find out that he made a false statement is that I am going to hire one of my friends to find out the truth. Again, I said that one of the terms in the contract that we are not to discuss it with outside parties, but is the contract voidable since he intentionally gave me false information? I am afraid the judge will rule against me since an outside party will be involved which is my friend. Before I drafted the contract, I asked him if he was telling the truth and he said yes and drafted up the contract assuming the he was honest. I even saved all the e-mails so I can use it all as evidence.

Asked on October 27, 2011 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A contract can be voided due to a material (or important) misrepresentation or due to a fundamental mistake in its inception, with the result that there was no true


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