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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. These elements can be reordered but must all be present for the contract to be considered valid. A voidable contract also includes all four elements but can be rescinded for specific reasons. For example, if you sign a contract to buy a house that you believe is blue, but it turns out to be a different color, you may have the option to rescind the contract based on that misunderstanding.
