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In the context of contracts, they can be classified as valid, void, or voidable. A voidable contract means that one or both parties can choose to invalidate it. This typically occurs when one party lacks capacity, has been defrauded, or entered the contract due to misrepresentation. For instance, if a contract is made with someone under the age of majority (often 18), such as a 17-year-old, the minor can void the contract at any time before reaching 18, thereby seeking reimbursement. This highlights the significance of capacity in contract validity.