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In the context of cut contracts, a contract can be classified as valid, void, or voidable. A voidable contract allows one or both parties the option to declare it void, typically arising when a party lacks capacity, is defrauded, or enters into the contract due to misrepresentation. For example, if a contract is made with someone under the age of majority, often set at 18 years old, that individual can void the contract anytime before reaching 18. This means they can demand a refund or a cancellation of the contract, highlighting the importance of capacity in contractual agreements.
