Under California law, a real estate contract may be terminated or discharged in several ways. All of the following are valid methods to terminate a California real estate contract EXCEPT:
Correct Answer
B) Operation of law due to the death of the seller after a binding contract has been formed
Unlike an offer, a binding real estate contract in California does NOT terminate upon the death of a party. The contract obligations pass to the deceased party's estate and heirs. The personal representative or executor is generally required to fulfill the contract terms. This is a common exam trap — death terminates an offer (Civil Code §1587) but not an executed contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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