Which type of contract is binding against one party but not the other?

A voidable contract is binding against one party but can be canceled or voided at the discretion of the other party. In essence, one party has the right to affirm or reject the contract based on certain factors, such as misrepresentation, lack of capacity, or undue influence. The party who has the option to void the contract maintains their rights within the agreement until they choose to exercise their option to cancel.

For example, if a minor enters into a contract, that contract is voidable at the minor's discretion. The other party is bound to the terms of the contract, but the minor has the legal right to opt out. This characteristic distinguishes voidable contracts from others, as it highlights the element of choice for one party while maintaining a binding effect on the other.