Contracts
A NJ real estate contract that is signed under duress is:
AFully valid and enforceable
BVoidable at the option of the party who was subjected to the duress✓ Correct
CAutomatically void
DEnforceable only if both parties had attorneys
Explanation
A contract signed under duress (wrongful threat or coercion) is voidable—not automatically void. The victim of the duress may elect to rescind or may choose to ratify the contract after the duress is removed.
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Key Terms to Know
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 MoneyA 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.
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