contracts

valid contract

A contract that contains all the essential elements required by law and is therefore binding and enforceable. These elements are generally competent parties, offer and acceptance (mutual assent), consideration, and a legal purpose. Real estate contracts usually must also be in writing to satisfy the statute of frauds. A contract lacking an element may be void, voidable, or unenforceable.

Exam tip: Distinguish valid (all elements), void (no legal effect), voidable (one party may cancel), and unenforceable (valid but not provable in court).
Example: A signed purchase agreement between two adults for a house at $300,000 with earnest money and a lawful purpose is a valid contract.

1. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Answer & explanation

Answer: D. Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Related terms & state variants

competent party consideration unenforceable contract void contract voidable contract

Sources

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Last verified: 2026-10-23