What term refers to the election to avoid a voidable contract?

The term that refers to the election to avoid a voidable contract is disaffirmance. Disaffirmance allows a party to a contract, typically one who is a minor or has been misled, to reject the contract and thus void its obligations. This election is crucial because it recognizes certain circumstances under which an individual can affirmatively choose to nullify their agreement due to factors such as lack of capacity or issues like fraud.

In the context of contract law, disaffirmance underscores the protection offered to individuals from being bound by agreements that they may not fully understand or that were imposed upon them in some way. This is particularly important for vulnerable parties, ensuring they have an opportunity to protect their interests.

The other terms, while related to contract law, have different meanings: renunciation refers to the voluntary abandonment of a right or claim, rescission is the act of canceling a contract, often by mutual consent, and nullification is the process of rendering a law or agreement void. However, none of these specifically capture the choice to void a contract as disaffirmance does.