Contracts

In Texas, a real estate contract that is 'void' differs from one that is 'voidable' in that:

AVoid contracts can be ratified by both parties; voidable contracts cannot
BA void contract has no legal effect from the start; a voidable contract can be affirmed or rescinded by one party✓ Correct
CVoid contracts only apply to commercial property
DVoidable contracts must be cancelled by a court order

Explanation

A void contract has no legal existence or effect (e.g., an illegal purpose). A voidable contract is valid but can be set aside by one party (e.g., a contract made by a minor or induced by fraud). The aggrieved party can choose to affirm or rescind.

Related Texas Contracts Questions

Practice More Texas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Texas Quiz →