Contracts
In Idaho, which of the following would make a real estate contract voidable?
AAn illegal purpose
BMutual mistake of fact about a material term
COne party's misrepresentation inducing the other to sign
DBoth B and C✓ Correct
Explanation
A contract is voidable (can be rescinded by the affected party) when there is mutual mistake about a material fact or when one party's misrepresentation induced the other to enter the contract. Illegal purpose typically makes a contract void (not just voidable).
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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.
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.
Option ContractA 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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