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In this tutorial, the speaker explains the differences between valid, voidable, and void contracts. A valid contract contains all four essential elements: mutual consent, capable parties, lawful object, and consideration. The order of these elements is flexible as long as all are included. A voidable contract also has all four elements but can be rescinded under certain circumstances, such as if a buyer expected a blue house but receives a different color. Thus, it's crucial to understand these distinctions when dealing with contracts.
