Which of the following constitutes valid consideration in a real estate purchase contract?
Why The buyer's promise to pay the purchase price Is Correct
Answer C: The buyer's promise to pay the purchase price
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
Related Alaska Questions
- A contract that appears valid but is unenforceable because of a legal defect, such as a missing written requirement, is called a:Contracts
- In an Alaska installment land contract (contract for deed), legal title is held by:Contracts
- What is the legal effect when a buyer and seller sign a purchase agreement?Contracts
- A real estate contract that lacks consideration is:Contracts
Key Terms to Know
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →