Contracts

Contracts — Agency & Contracts > Exam priority alert: Contracts alone account for 17% of the national exam — the single largest topic. Master this section and you've secured nearly one-fifth of your score before you open any other chapter. --- ## Why Contracts Matter on the Exam Contract questions test whether you can identify what makes an agreement valid, enforceable, or dead — and what happens when things go wrong. Expect scenarios about offer/acceptance, listing agreement types, and breach remedies across 13–17 questions on the national portion. --- ## The Foundation: What Makes a Contract Valid? Use the acronym CALCO to remember every element a valid real estate contract must have: | Letter | Element | What It Means | |--------|----------|---------------| | C | Competent parties | Both parties must be of legal age and sound mind | | A | Agreement | A valid offer + acceptance (mutual assent) | | L | Legality | The purpose must be legal | | C | Consideration | Something of value exchanged by both sides | | O | Written (Statute of Frauds) | Real estate contracts must be in writing to be enforceable | ### Contract Status — Four Possibilities - Valid: All elements present; fully enforceable by both parties - Void: No legal force at all — it's as if the contract never existed (e.g., illegal purpose, incompetent party with no capacity) - Voidable: Exists but one party has the right to rescind (e.g., a contract signed by a minor — the minor may rescind; the adult cannot) - Unenforceable: Technically exists but a court will not enforce it (e.g., an oral real estate contract — the…