ContractsIntermediateCalifornia Exam

A contract signed under duress is:

AVoid, under standard California purchase contract terms

BVoidable by the party who was under duressCorrect

CVoidable by either party, as typically drafted in a residential purchase agreement

DUnenforceable by both parties, consistent with common contract law principles

Why Voidable by the party who was under duress Is Correct

Answer B: Voidable by the party who was under duress

A contract signed under duress lacks genuine mutual consent, making it voidable. Only the party who was under duress has the right to rescind — the other party cannot use duress as a defense to avoid their obligations.

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.

Key Contracts Terms in This Question

Purchase Agreement

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

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Key Terms to Know

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.

Right of First Refusal

A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.

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.

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