Before you read
Test yourself first: 5 questions
Question 1 of 5
Which of the following is NOT one of the essential elements required for a valid contract?
Answer: C. A valid contract requires offer and acceptance, consideration, legally competent parties, and a legal purpose. Notarization is not an essential element of contract validity.
Question 2 of 5
A contract with a legal purpose that has all essential elements but was induced by one party's fraud is:
Answer: B. Fraud makes a contract voidable at the option of the defrauded (injured) party, who may either enforce or rescind it.
Question 3 of 5
A void contract is best described as one that:
Answer: B. A void contract has no legal force or effect because it lacks one or more essential elements; it was never an enforceable contract.
Question 4 of 5
Which situation results in an UNENFORCEABLE (rather than void or voidable) contract?
Answer: B. An oral land-sale agreement violates the statute of frauds: possibly valid between honest parties, but a court won't enforce it. Illegal purpose = VOID; minor or duress = VOIDABLE.
Question 5 of 5
If a buyer dies before closing, a valid purchase contract generally:
Answer: A. A real-estate purchase contract survives a party's death and binds the estate; performance is carried out by the estate's representative.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Missing an element makes the contract void or voidable.
Elements of a Valid Contract: FAQs
Is Elements of a Valid Contract on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
