Oregon 30-Hour Real Estate Law Practice Test

Which situation exemplifies a legally enforceable agreement?

1. A minor agrees to buy a car

2. Two adults agree to purchase property

3. A verbal promise to lend money

4. Friends arranging a weekend plan

The correct answer is: Two adults agree to purchase property

In the context of legally enforceable agreements, the situation where two adults agree to purchase property is significant because it meets the essential criteria for a valid contract. A legally enforceable agreement must involve parties who have the legal capacity to contract, a lawful objective, mutual consent, and consideration. In this case, both parties—being adults—possess the legal capacity to enter into a contract. The agreement to purchase property serves a lawful purpose and involves consideration, which is typically the payment made for the property. Furthermore, the transaction can be documented formally, often requiring a written contract to comply with real estate laws, particularly in Oregon where laws stipulate that certain contracts related to real property must be in writing to be enforceable. The other situations do not fulfill one or more of the necessary legal criteria for enforceability. For example, a minor agreeing to buy a car raises issues of capacity, as minors generally cannot enter into contracts that are binding unless they are for necessities. A verbal promise to lend money lacks the formalities often required for enforceability, particularly regarding consideration and the ability to prove terms in the absence of written documentation. Meanwhile, friends arranging a weekend plan typically falls under a social agreement, which is not intended to create legal obligations and