Contracts
A Pennsylvania Agreement of Sale that lacks a consideration clause would be:
AAutomatically valid since the purchase price implies consideration
BPotentially unenforceable for lack of consideration — though nominal consideration like $1 is legally sufficient✓ Correct
CValid only if witnessed by a notary
DRequired to be filed with PREC
Explanation
Consideration (an exchange of value) is a required element of a valid contract. While the purchase price constitutes the primary consideration in a sale contract, even a nominal amount ($1, 'and other good and valuable consideration') satisfies the legal requirement.
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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.
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.
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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