NATIONAL REAL ESTATE EXAM CONTRACTS
1. mediation: a third party tries to get the parties to the contract to agree to a resolution of
their conflict, but neither party would have to agree to mediation or bebound by the mediation
process.
2. arbitration: a third-party arbitrator serves as a judge, hearing both parties andmaking a
decision which is binding on the parties.
3. assignment: transfer all interests and rights to others
4. rescission: terminate all obligations under the contract
5. 4 elements required of every contract: CLOC:
(C)ompetent Parties
(L)egal Object
(O)ffer and acceptance
(C)onsideration
6. valid contract: contains all the essential elements and is binding and enforceableupon both
parties to the contract.
7. voidable contract: has all of the elements necessary to create the contract andis enforceable
but is subject to rescission by one of the parties to the contract.
It is legally sufficient and recognized by law and, therefore, binding on the parties. However,
it can be made void. But, if the injured party does not take any action, thecontract is considered
valid and enforceable.
8. What can make contract generally voidable?:
- was a minor
- was misled
- did not agree to contract voluntarily
- later found to have lacked competency at time of entering contract
9. void contract: Has no force or effect in law, so it will not be enforced in a court of law. A
contract is void if it is missing any of the essential elements of a contract:competent parties, a
legal object, mutual consent, consideration or, in some cases,being put in writing.
10. Statute of Limitations: specific period of time available, to take action to enforcea
contract, set by state
11. laches: This principle allows a court to declare a contract unenforceable due toneglect or
undue delay in bringing about a legal claim or asserting a right even though the Statute of
1. mediation: a third party tries to get the parties to the contract to agree to a resolution of
their conflict, but neither party would have to agree to mediation or bebound by the mediation
process.
2. arbitration: a third-party arbitrator serves as a judge, hearing both parties andmaking a
decision which is binding on the parties.
3. assignment: transfer all interests and rights to others
4. rescission: terminate all obligations under the contract
5. 4 elements required of every contract: CLOC:
(C)ompetent Parties
(L)egal Object
(O)ffer and acceptance
(C)onsideration
6. valid contract: contains all the essential elements and is binding and enforceableupon both
parties to the contract.
7. voidable contract: has all of the elements necessary to create the contract andis enforceable
but is subject to rescission by one of the parties to the contract.
It is legally sufficient and recognized by law and, therefore, binding on the parties. However,
it can be made void. But, if the injured party does not take any action, thecontract is considered
valid and enforceable.
8. What can make contract generally voidable?:
- was a minor
- was misled
- did not agree to contract voluntarily
- later found to have lacked competency at time of entering contract
9. void contract: Has no force or effect in law, so it will not be enforced in a court of law. A
contract is void if it is missing any of the essential elements of a contract:competent parties, a
legal object, mutual consent, consideration or, in some cases,being put in writing.
10. Statute of Limitations: specific period of time available, to take action to enforcea
contract, set by state
11. laches: This principle allows a court to declare a contract unenforceable due toneglect or
undue delay in bringing about a legal claim or asserting a right even though the Statute of
