ContractsIntermediateCalifornia Exam

A contract that is 'voidable' differs from a 'void' contract in that:

Q: A contract that is 'voidable' differs from a 'void' contract in that:

A void contract (e.g., one with an illegal purpose) is invalid from inception and cannot be enforced. A voidable contract appears valid but can be disaffirmed by the disadvantaged party (e.g., a minor or a person who was defrauded), while remaining valid until disaffirmed.

AA voidable contract has no legal effect from the beginning, while a void contract can be enforced by either party

BA voidable contract is valid but can be disaffirmed by one party, while a void contract has no legal effect at allCorrect

CA voidable contract requires court action to cancel, while a void contract can be canceled by either party

DThere is no legal difference between void and voidable contracts in California

Why A voidable contract is valid but can be disaffirmed by one party, while a void contract has no legal effect at all Is Correct

Answer B: A voidable contract is valid but can be disaffirmed by one party, while a void contract has no legal effect at all

A void contract (e.g.

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.

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

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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.

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

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Real Estate Contracts Guide

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