What makes a contract voidable?

A contract is considered voidable when one party has the right to reject it due to specific circumstances that undermine the mutual consent necessary for a legally binding agreement. In the context of this question, fraud is a key reason for a contract to be voidable.

Fraud occurs when one party intentionally misrepresents material facts, leading the other party to enter into the contract based on this false information. Because the affected party did not provide true consent, they have the legal right to void the contract upon discovering the fraudulent actions. This ensures that contracts are formed based on integrity and honesty, maintaining the principle of fair dealings in contractual agreements.

In contrast, while minor misrepresentation may affect a contract, it typically doesn't rise to the level of fraud needed to declare a contract voidable. Ambiguous terms can create confusion but don't inherently strip one party of consent. Lastly, failure to communicate could affect the clarity or performance of a contract but does not directly relate to the concept of a voidable contract based on deceit or misrepresentation.