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Colorado Law & Practice - Contracts
& Agency Questions and Answers
Latest 2026
Voluntary Agreement Ans: - Meeting of the minds;
- Good faith of both parties;
- Free from duress or menace.
Mutual Mistake Ans: both parties to a contract have an
incorrect belief about an important fact
Offer becomes contract when... Ans: it is accepted by the
offeree and acceptance is communicated back to the
offeror
Offeror may withdraw or rescind the offer
without penalty until... Ans: communication of the
acceptance is received by the offeror
Mirror Image Offer Ans: offer accepted without change
legally competent parties Ans: - Sound Mind and Sound
Body;
- A contract would be voidable by the minor if he chose
not to complete the purchase during his minority.
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Executed Contract Ans: A contract that has been
completely performed by both parties.
Equitable Title Ans: right to later obtain a title
Legal Act Ans: No valid contract may ever exist for an
illegal purpose.
Two Types of Consideration Ans: - Benefit
- Detriment
Benefit Ans: consideration received by a seller
Detriment Ans: consideration given up by the buyer
Consideration Ans: Anything of value to the other party
Voidable Contract Ans: A contract that may be legally
avoided (canceled, or annulled) at the option of one of
the parties.
Is an oral contract enforcable? Ans: In general, an oral
contract is just as enforceable as a written one, assuming
you can prove the terms of the contract.
Expressed Contract Ans: all of the terms and conditions
are definite and specific, by either writing or spoken
word or action. The parties express their intent.
Implied Contract Ans: one created by inference based on
the conduct of the parties.
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Example: a broker showing homes to a buyer over a
period of time may render the buyer liable to a buyer
representation contract based on the parties' actions -
even though no such agreement was expressed.
Good Consideration Ans: i.e. love and affection, or a
promise to refrain from filing a lawsuit
NOTE: In a real estate contract, earnest money is
generally offered as evidence of the buyer's serious
intent. While earnest money would be considered part of
the consideration, it is NOT required to create a contract
valid under the law. The buyer's promise to buy and the
seller's promise to sell are legally sufficient
consideration.
Offeror Ans: A person who makes an offer.
Offeree Ans: A person to whom an offer is made.
Undue Influence Ans: Brokers must use care in the level
of advice given to clients, especially first-time
homebuyers who may be subject to any recommendation
by the broker.
Mutual Assent Ans: the parties to a contract must
manifest by words or conduct that they have agreed to
enter into a contract
Statutes of Fraud Ans: - Parol Evidence Rule
- Unenforceable
© 2025 All rights reserved
Colorado Law & Practice - Contracts
& Agency Questions and Answers
Latest 2026
Voluntary Agreement Ans: - Meeting of the minds;
- Good faith of both parties;
- Free from duress or menace.
Mutual Mistake Ans: both parties to a contract have an
incorrect belief about an important fact
Offer becomes contract when... Ans: it is accepted by the
offeree and acceptance is communicated back to the
offeror
Offeror may withdraw or rescind the offer
without penalty until... Ans: communication of the
acceptance is received by the offeror
Mirror Image Offer Ans: offer accepted without change
legally competent parties Ans: - Sound Mind and Sound
Body;
- A contract would be voidable by the minor if he chose
not to complete the purchase during his minority.
© 2025 All rights reserved
, 2 | Page
Executed Contract Ans: A contract that has been
completely performed by both parties.
Equitable Title Ans: right to later obtain a title
Legal Act Ans: No valid contract may ever exist for an
illegal purpose.
Two Types of Consideration Ans: - Benefit
- Detriment
Benefit Ans: consideration received by a seller
Detriment Ans: consideration given up by the buyer
Consideration Ans: Anything of value to the other party
Voidable Contract Ans: A contract that may be legally
avoided (canceled, or annulled) at the option of one of
the parties.
Is an oral contract enforcable? Ans: In general, an oral
contract is just as enforceable as a written one, assuming
you can prove the terms of the contract.
Expressed Contract Ans: all of the terms and conditions
are definite and specific, by either writing or spoken
word or action. The parties express their intent.
Implied Contract Ans: one created by inference based on
the conduct of the parties.
© 2025 All rights reserved
, 3 | Page
Example: a broker showing homes to a buyer over a
period of time may render the buyer liable to a buyer
representation contract based on the parties' actions -
even though no such agreement was expressed.
Good Consideration Ans: i.e. love and affection, or a
promise to refrain from filing a lawsuit
NOTE: In a real estate contract, earnest money is
generally offered as evidence of the buyer's serious
intent. While earnest money would be considered part of
the consideration, it is NOT required to create a contract
valid under the law. The buyer's promise to buy and the
seller's promise to sell are legally sufficient
consideration.
Offeror Ans: A person who makes an offer.
Offeree Ans: A person to whom an offer is made.
Undue Influence Ans: Brokers must use care in the level
of advice given to clients, especially first-time
homebuyers who may be subject to any recommendation
by the broker.
Mutual Assent Ans: the parties to a contract must
manifest by words or conduct that they have agreed to
enter into a contract
Statutes of Fraud Ans: - Parol Evidence Rule
- Unenforceable
© 2025 All rights reserved
