What characterizes a Voidable Contract?

A voidable contract is characterized by the fact that it can be legally enforced but may also be rejected or canceled by one party under certain circumstances. This means that while the contract exists, it has elements that allow one party to void it, typically due to lack of capacity, fraud, or undue influence, among other considerations.

The choice indicating that a voidable contract counts for proration even if terminated reflects the understanding that the terms of the contract have a financial implication that may remain active until the contract is explicitly voided. In salary cap terms, this can mean that the financial commitments of the contract may impact team salary cap calculations even if the contract is no longer in effect, thus influencing their financial strategies in the context of free agency and team building.

The other options include characteristics that might pertain to different types of contracts but do not adequately reflect the distinctive feature of a voidable contract. For instance, a contract that cannot be terminated or guarantees minimum salary does not align with the essence of a voidable contract's conditional enforceability. Similarly, requiring player approval pertains to contractual negotiations rather than the inherent nature of the contract itself.