James and Linda enter into a written agreement in California where James will sell Linda his rental property for $680,000. The agreement contains all essential terms but neither party has yet performed. James receives a higher offer and wants to back out. He argues the contract lacks consideration because Linda has not yet paid anything. Under California law, is James correct?
Correct Answer
B) No, because Linda's promise to pay the purchase price constitutes valid consideration under California law
Under California Civil Code §1605-1615, consideration can be a promise, act, or forbearance. In a bilateral real estate contract, Linda's promise to pay $680,000 in exchange for James's promise to convey title constitutes valid mutual consideration. Actual payment is not required at the time of contract formation.
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Previous Question
Elena, who is under the influence of prescription medication that impairs her judgment, signs a real estate purchase agreement in California for a home priced at $425,000. After the medication wears off, Elena wants to void the contract. Under California Civil Code §39, what is Elena's BEST legal argument?
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A California real estate licensee is advising a client on what must be included in a valid real estate purchase contract. Under California law, all of the following are required elements of a valid contract EXCEPT: