Cutaways make it easier to access upper frets
As the name suggests, a cutaway in a guitar refers to an indentation that looks like a part of the guitar was "cut away" from the body. With this type of guitar, the body is shaped so that the left hand can more easily access the positions closer to the body. This allows a guitarist to easily reach the 20th position right next to the sound hole. However, the sound suffers to some degree due to the indentations in the body. Of course, this does not pose any problem at all for an electric guitar or electric acoustic guitar.