Oregon 30-Hour Real Estate Law Practice Test

Which of the following statements is true regarding express agreements?

1. They must be written

2. They are always verbal

3. They may be written or verbal

4. They require notarization

The correct answer is: They may be written or verbal

Express agreements refer to agreements where the terms are explicitly stated, either orally or in writing, leaving no room for ambiguity. The nature of these agreements allows for flexibility in their execution; hence, they can exist in both forms. When express agreements are made orally, they still carry the same weight in legal terms as those made in writing, provided that the subject matter does not fall under the statute of frauds, which may require certain contracts to be in writing to be enforceable. For instance, agreements pertaining to the sale of real estate must typically be in writing, but many other types of contracts can be validly formed verbally. While it's true that written express agreements provide a clearer evidential basis in case of disputes, they are not strictly required to create a binding contract unless specified by law. Therefore, the option stating that express agreements may be written or verbal accurately reflects the nature of these agreements in legal terms.