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Pass California

Contracts, 12% of the examination

Valid contract

An agreement with legally capable parties, mutual consent, a lawful object, and sufficient consideration.

Validity concerns formation. Enforceability asks whether a court will provide the requested remedy, which can depend on a writing, timing, or another rule. A valid agreement can be unenforceable, and a void agreement was never legally effective.

See also

Void and voidableA void contract never had legal effect. A voidable contract is valid until the party with the power to escape elects to disaffirm it.Statute of fraudsThe rule requiring certain contracts to be in writing to be enforceable.

Test the distinction

A relevant question from Contracts, selected because its facts or explanation use this concept.

Contracts ยท 12%General

Which are the four essential elements of a valid contract?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

ContractsAll eight official DRE contract topics in one California-specific guide, from formation and representation agreements to purchase offers, notes, options, remedies, and advance fees.12%Practice Contracts24 questions on this area, every option explained.Practice

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