What characterizes a voidable contract?

A voidable contract is one that is valid and enforceable on its face but may be legally voided at the option of one of the parties involved. This typically occurs because one party has some sort of legal reason to back out, such as being a minor, having been misled or coerced, or lacking capacity to contract. When a contract is voidable, the party who has the right to void it can choose to either affirm the contract or reject it.

This flexibility in decision-making distinguishes a voidable contract from other types of contracts that may be void or unenforceable for different reasons. Therefore, the correct answer highlights that the contract can be terminated at the discretion of the wronged party, making it clear that the option to void or continue with the contract rests with that specific party. This option is crucial because it protects individuals who may have entered into agreements under negative circumstances, allowing them to seek remedy.