ContractsIntermediateCalifornia Exam

A contract that is 'voidable' means:

AIt is automatically invalid, under standard California purchase contract terms

BIt can be disaffirmed by one party but is otherwise validCorrect

CIt requires court approval to be valid, as typically drafted in a residential purchase agreement

DIt has expired, consistent with common contract law principles

Why It can be disaffirmed by one party but is otherwise valid Is Correct

Answer B: It can be disaffirmed by one party but is otherwise valid

A voidable contract is valid and enforceable unless one party chooses to disaffirm it. Common examples include contracts signed by minors or under duress.

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

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.

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Real Estate Contracts Guide

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