Contracts
An Iowa real estate contract that is induced by undue influence is:
AVoid from inception
BVoidable by the party who was unduly influenced✓ Correct
CValid if all other elements are met
DUnenforceable only if notarized
Explanation
A contract induced by undue influence (overcoming the free will of a party) is voidable by the victim. The affected party may elect to rescind the contract or allow it to stand.
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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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