Unit 11: Contracts

Real Estate Contracts

12 exam questionsHigh Priority

Contract elements, types, validity, and Florida-specific contract law.

Quick Explanation

5 min read

Contracts must have 4 elements to be valid: Offer, Acceptance, Consideration, and Competent Parties. Contracts for real estate must be in writing (Statute of Frauds). A void contract has no legal effect; a voidable contract can be canceled by one party.

Key Points — What Matters for the Exam

4 elements of a valid contract: Offer, Acceptance, Consideration, Competent Parties

Statute of Frauds = real estate contracts MUST be in writing

Void contract = no legal effect from the start (missing essential element)

Voidable contract = can be canceled by one party (e.g., minor, fraud, duress)

Counteroffer = changes any term, voids original offer

Specific performance = court order to fulfill contract (used in real estate)

Novation = substituting new party or contract, releasing original party

Earnest money = good faith deposit, NOT required for valid contract

Memory Trick

OACC = the 4 contract elements: Offer, Acceptance, Consideration, Competent parties. 'Only A Competent Contract works.'

Common Trap Answers — Don't Fall For These

Earnest money is NOT required for a valid contract

A counteroffer VOIDS the original offer — the original offeror is no longer bound

A minor's contract is VOIDABLE (not void) — the minor can choose to enforce or cancel

Key Terms for This Unit (6)

Void Contract

A contract with no legal effect from the start — missing an essential element.

Voidable Contract

A contract that can be canceled by one party (e.g., a contract signed by a minor).

Statute of Frauds

Law requiring certain contracts (real estate sales, leases over 1 year) to be in writing.

Specific Performance

Court order requiring a party to fulfill contract terms. Used in real estate because each property is unique.

Counteroffer

A response to an offer that changes any term. Voids the original offer.

Novation