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In the context of contracts, they can be categorized as valid, void, or voidable. A voidable contract allows one or both parties the option to invalidate it. This situation often arises when a party lacks capacity, has been defrauded, or entered the contract under misrepresentation. For instance, if a contract is made with someone under the age of majority, typically 18, that individual can later choose to void the contract before reaching 18, claiming a refund or other remedies. This illustrates the significant implications of capacity in contract law.
