In what scenario does a voidable contract become void?

A voidable contract is one that remains valid until one party chooses to void it. This means that it is initially enforceable, but it gives one party the right to cancel it under certain conditions.

The scenario in which a voidable contract becomes void is when the party holding the right to void the contract decides to exercise that option. In this case, that party might have legitimate grounds to cancel the contract, such as misrepresentation, duress, or a lack of capacity. Once the party with the option opts to cancel, the contract is effectively nullified and ceases to have any legal effect.

This understanding highlights the significance of the choice made by the party with the option. If all parties agree to cancel the contract, it doesn't stem from the inherent voidability of the contract itself but rather from mutual consent. Likewise, the complete execution of all terms or disputes over contract terms does not inherently transform a voidable contract into a void contract unless the party with the cancellation right actively chooses to void it.