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In this tutorial, the speaker explains the distinctions between valid, void, and voidable contracts. A valid contract meets the basic legal elements, exemplified by the purchase of a blue house where the color is as agreed. A voidable contract, on the other hand, gives one party the option to rescind the agreement; for instance, if the blue house turns out to be green, the buyer can choose to cancel the contract since it does not match the agreement. Additionally, contracts affected by fraud, misrepresentation, or duress are also considered voidable.
