Annulment in accounting refers to the cancellation by a court of a bankruptcy order, under certain conditions such as wrongful bankruptcy declaration, full repayment of debts, or court-approved voluntary arrangement.
In legal terms, 'voidable' describes a situation where a legal obligation or transaction remains valid and enforceable unless an affected party chooses to void it. This legal classification often arises in contracts, where a defect that allows for annulment can be systematically asserted or proven in court. Until such action happens, the voidable act or agreement retains its legal force.
