California Real Estate SalespersonContractsEasy
For a contract to be legally valid, which combination of elements must all be present?
- AWritten form, notarization, and recording
- BOffer, escrow instructions, and a title report
- CMutual consent, lawful object, capacity, and consideration
- DOffer, acceptance, and a licensed real estate agent
Show answer & explanationAnswer & explanation
Correct answer: C. Mutual consent, lawful object, capacity, and consideration
A valid contract requires parties capable of contracting, mutual consent (offer and acceptance), a lawful object, and sufficient consideration. Recording, notarization, and agent involvement are not required elements of contract validity.
Why the other options are wrong
- A. Notarization and recording are not required for most real estate contracts to be valid.
- B. Escrow and title reports relate to closing, not contract formation.
- D. An agent is not a required element of a valid contract.
Elements of a Valid Contract
Every valid contract must contain capable parties, mutual consent, a lawful object, and consideration.
- Capacity means legal age and sound mind
- Mutual consent = offer + acceptance
- Consideration must have value, even if nominal
- Lawful object means the purpose must not violate law or public policy
Memory trick: CLOC: Capacity, Lawful object, Offer/acceptance, Consideration.