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The tutorial discusses the differences between valid, voidable, and void contracts. A valid contract contains all four essential elements: mutual consent, capable parties, lawful object, and consideration. If these elements are present, the contract is considered valid. A voidable contract also has all four elements but can be rescinded for specific reasons. For instance, if someone signs a contract to buy a house believing it is blue, but it turns out to be a different color, they may have the right to rescind the agreement. The presentation emphasizes the importance of understanding these distinctions in contracts.