All of the following make a contract voidable if present at its formation, except:
Question & Answer
Review the question and all answer choices
Fraud.
Duress.
B is incorrect because duress makes a contract voidable. When someone is forced into an agreement through threats or pressure, they can choose to void it rather than being bound by it automatically.
Undue influence.
C is incorrect because undue influence makes a contract voidable. This occurs when someone uses their position of power or trust to improperly persuade another party, allowing the victim to cancel the contract.
Illegal purpose.
D is incorrect because an illegal purpose makes a contract void, not voidable. Contracts violating public policy or the law are automatically unenforceable from the beginning.
Why is this correct?
A is correct because fraud makes a contract voidable, not void. The aggrieved party can choose to either enforce or cancel the contract, rather than it being automatically unenforceable. This distinction is critical in real estate transactions where remedies differ based on contract validity.
Continue Learning
Explore this topic in different formats
More Contracts Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.