exam 29/ section 9/ Unit 1: Elements of a Valid Contract

In which of the following types of contracts does one or more of the contract's terms still need to be completed?

Executory contract

All of the following are true regarding implied agreements EXCEPT which one?

An implied agreement is based on a formal agreement.

Which of the following elements is always required for a real estate contract to be valid?

Consideration

A valid contract must include which of the following elements?

Legally competent parties

Seller Tad has found a buyer, Minnie, for his property. The two of them are about to enter into a contract when Tad receives an email from Minnie. Turns out that Minnie's co-worker used to date Tad and told Minnie he'd cheated on his construction contractor licensing exam. Minnie threatens to spill the beans unless Tad comes down $10,000 on the sales price. Tad reluctantly agrees and they sign the contract. What is true about this situation?

Minnie used duress against Tad, so the contract is invalid.

In a purchase offer, is earnest money required in order to have a binding contract?

No, because the buyer's consideration is the promise to buy.

What's the main point of the statute of frauds?

Real estate purchase and sale contracts must be in writing to be enforceable.

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract?

The party lacking legal capacity