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In the context of cut contracts, a contract can be valid, void, or voidable. A voidable contract allows one or both parties to declare the contract void, typically due to one party lacking the capacity to contract, being defrauded, or entering into the contract based on misrepresentation. For instance, if a contract is made with someone under the age of majority—commonly 18 years old—they can choose to void the contract before reaching that age, requesting a refund or other remedies.