ContractsIntermediateCalifornia Exam

A purchase agreement signed by a buyer who was under duress would be:

AVoid

BVoidable by the buyerCorrect

CFully enforceable

DEnforceable only if the price is fair

Why Voidable by the buyer Is Correct

Answer B: Voidable by the buyer

A contract entered into under duress, undue influence, fraud, or mistake is voidable, not void. The party who was subjected to duress has the option to affirm or disaffirm the contract, but it is valid until that party chooses to cancel.

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

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.

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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