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In this video, the presenter explains the difference between void and voidable contracts. A contract is defined as an oral or written agreement between two parties that is enforceable by law, meaning it creates mutual obligations and is legally binding. The key components of a contract include the rights and duties of the parties involved and the terms of the agreement. An agreement arises when one party makes an offer, which the other party accepts. Essentially, a contract is formed through the combination of an offer and acceptance, where the offer specifies what will be provided, and acceptance indicates consent to the offer.
