Consideration (value exchanged)
Before you read
Test yourself first: 5 questions
Question 1 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 2 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.
Question 3 of 5
A contract that never had legal effect (e.g., for an illegal purpose) is:
Answer: A. A void contract has no legal effect from the start; a voidable one is valid until the injured party chooses to disaffirm it.
Question 4 of 5
If a seller breaches a valid purchase contract, the buyer may seek:
Answer: A. Remedies for breach include specific performance (force the sale), monetary damages, or rescission (cancel and restore the parties).
Question 5 of 5
A valid contract that can no longer be enforced in court because too much time has passed is:
Answer: A. An unenforceable contract was valid but cannot be enforced due to a legal bar such as the statute of limitations or lack of a writing.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Offer & acceptance (mutual assent)
- Consideration (value exchanged)
- Legal capacity (age, sound mind)
- Legal purpose
- In writing & signed (real estate — statute of frauds)
Valid Contract — Must-Haves: FAQs
Is Valid Contract — Must-Haves 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.
