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In the context of contracts, they can be classified as valid, void, or voidable. A voidable contract allows one or both parties to declare it void, often due to lack of capacity, fraud, or misrepresentation. An example includes a minor, such as a 17-year-old, who lacks the legal capacity to contract since the age of majority is typically 18. Before reaching this age, the minor can void the contract, seeking a refund or reversal of the agreement. This principle emphasizes the importance of the parties' capacity and intentions in forming legally binding contracts.
