Exam Question Answers
Exam practice · answers explained
Here's the answer (and why the trap answer is so tempting)
Found your question below. If you got it wrong, you're in good company: these are built to look easy.
A contract that one party can cancel, but the other can't, is called:
A voidable contract is valid, but one party has the right to cancel it, for example a minor, or someone who signed because of fraud or pressure. The other party is stuck with it unless that person cancels.
The trap is Unilateral. It sounds like "one side," but a unilateral contract is a promise in exchange for an act (like an open listing or an option). Void means it never had legal effect at all. Unenforceable means it's valid but can't be enforced in court, like an oral contract to sell land.
Two friends buy a house together. One passes away, and her share goes to her children, not to her co-owner. How did they hold title?
With tenancy in common there's no right of survivorship. Each owner's share passes to their heirs or through their will, so her children inherit her half.
The trap is Joint tenancy, the one people know best. Joint tenancy (and tenancy by the entirety, for married couples) includes the right of survivorship, so the surviving owner would get her share. Severalty means one sole owner.
Which of these is NOT required for a contract to be valid?
A valid contract needs competent parties, offer and acceptance (mutual agreement), consideration, and a legal purpose. Notarization is not one of the requirements.
People pick Consideration because it sounds technical, but it's simply something of value exchanged, and it is required. Notarizing is often needed later, for example to record a deed, but it isn't what makes a contract valid.
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These questions are general practice examples, not questions from any official exam.