ContractsIntermediateAlaska Exam

A contract is 'void' rather than 'voidable' when:

AIt can be disaffirmed by a minor at their election, which most practitioners would generally accept

BIt was entered into under duress

CIt lacks an essential element such as lawful purpose and has no legal effect from the beginningCorrect

DOne party misrepresented a material fact

Why It lacks an essential element such as lawful purpose and has no legal effect from the beginning Is Correct

Answer C: It lacks an essential element such as lawful purpose and has no legal effect from the beginning

A void contract has no legal effect from the outset because it lacks an essential element (such as a legal purpose) or violates the law. It cannot be ratified or enforced.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

People Also Study

Key Terms to Know

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

Study This Topic

Real Estate Contracts Guide

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →