Under California contract law, which of the following scenarios would most likely render a real estate purchase contract VOID rather than merely voidable?
Correct Answer
C) The contract was formed for the purpose of committing an act prohibited by California law
Under California Civil Code §1667 and §1598, a contract formed for an unlawful purpose — including one that is contrary to an express provision of law or against public policy — is void ab initio, meaning it has no legal effect from the outset and cannot be ratified or enforced by either party. This distinguishes it from voidable contracts, which remain valid until the injured party elects to rescind.
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A property owner executes and delivers a deed transferring a parcel of land to a local nonprofit organization as a gift, with no money or other consideration exchanged. Under California law, which of the following best describes the validity of this transfer?
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A buyer submits an offer on a property in Santa Barbara. The offer includes all essential terms. Before the seller responds, the buyer dies in an accident. Under California law, what happens to the offer?