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In this tutorial, the speaker explains the distinctions among valid, void, and voidable contracts. A valid contract meets all necessary legal elements, exemplified by a contract for a blue house that is indeed blue. In contrast, a voidable contract allows one party to rescind under certain conditions, as illustrated by a scenario where a buyer expects a blue house but finds it is green. Although the buyer can choose to back out of the contract, it remains voidable because they might prefer the green color. Additionally, contracts involving fraud, misrepresentation, or those signed under duress, such as coercion with a threat, are also categorized as voidable.
