Oregon 30-Hour Real Estate Law Practice Test

What was the status of Ken and Debra's contract at the moment Ken signed?

1. Valid

2. Void

3. Voidable

4. Enforceable

The correct answer is: Voidable

The status of Ken and Debra's contract at the moment Ken signed it is considered "voidable." A voidable contract is one that is valid and legally enforceable unless one party chooses to void it. In many cases, this occurs when one party enters into the contract under certain circumstances that provide them a legal right to withdraw. This can include situations such as misrepresentation, undue influence, duress, or if one party lacks the capacity to contract (such as being a minor). When Ken signed the contract, it may have been valid and recognized as an agreement; however, specific circumstances might allow him or Debra to choose to invalidate the contract under certain conditions later on. Therefore, the contract holds a status that retains its validity until a party decides to take action against it, which aligns with the characteristics of a voidable contract. In contrast, if a contract were void, it would be treated as though it never existed, and no legal rights or obligations would arise from it. An enforceable contract, while legally valid, indicates that it can be upheld in a court of law but does not necessarily reflect the circumstances that grant one party a choice to void it. Valid indicates that the contract meets the necessary elements of a contract, but