- A land contract where the buyer has been making monthly payments for two years but has not yet received the deed is:
Answer: Executory because the seller still owes delivery of the deed upon completion
A land contract remains executory because both parties have ongoing obligations - the buyer continues making payments and the seller owes deed delivery upon completion of all payments. Choice A is incorrect because ongoing payments don't constitute complete performance by both parties. Choice C is incorrect because land contracts can extend beyond one year. Choice D is incorrect because deed delivery timing is governed by contract terms, not automatic rights after two years.
- A listing agreement signed by someone who forged the property owner's signature is:
Answer: Void because the signature was obtained through fraudulent misrepresentation of identity
A contract with a forged signature is void because it lacks a legally competent party who actually agreed to the terms - the signature is fraudulent. Choice A is incorrect because forgery is different from apparent authority. Choice C is incorrect because forgery creates void contracts, not voidable ones. Choice D is incorrect because void contracts cannot be executed, and ratification would create a new contract.
- A contract signed by a 16-year-old to purchase real estate is:
Answer: Voidable because the minor can choose to affirm or disaffirm the contract
Contracts with minors are typically voidable at the minor's option, meaning the minor can choose to affirm or disaffirm the contract. Choice A is incorrect because real estate contracts still require legally competent parties. Choice B is incorrect because the contract isn't automatically void - it's voidable by the minor. Choice D is incorrect because executory refers to performance status, not legal capacity issues.
- An exclusive agency listing where the owner sold the property themselves without using any broker is:
Answer: Executed because the listing period concluded with a successful property sale
In an exclusive agency listing, the owner retains the right to sell themselves without paying commission, so when this occurs, the contract is executed - both parties performed according to terms. Choice B is incorrect because exclusive agency listings specifically allow owner sales. Choice C is incorrect because the owner exercised a retained right, not interference. Choice D is incorrect because other potential buyers don't affect the executed status when the owner sells.
- A management agreement where the property manager has been collecting rents for six months but the agreement continues for another year is:
Answer: Executory because both parties have ongoing obligations for the remaining contract period
The management agreement remains executory because both parties have continuing obligations - the manager must continue providing services and the owner must pay management fees for the remaining term. Choice A is incorrect because ongoing performance doesn't make a contract executed until all obligations are complete. Choice B is incorrect because there's no such legal restriction on management agreement duration. Choice D is incorrect because termination rights are contractual, not related to voidable status.
- A purchase contract contingent on the sale of the buyer's current home, where the buyer's home just went under contract but has not closed is:
Answer: Executory because the contingency has not been fully satisfied by actual closing
The contract remains executory because the sale contingency typically requires actual closing, not just going under contract. Performance is still pending on this condition. Choice A is incorrect because going under contract doesn't satisfy a sale contingency that requires closing. Choice B is incorrect because contingency time frames vary and aren't automatically thirty days. Choice D is incorrect because while the buyer might waive the contingency, the current status is executory pending satisfaction.
- After closing has been completed and the deed has been delivered, the purchase contract is considered:
Answer: Executed because all contractual obligations have been fully performed
An executed contract is one where all parties have fully performed their obligations. After closing and deed delivery, the main contractual obligations are complete. Choice A is incorrect because warranty periods don't make a contract executory. Choice B is incorrect because while merger may occur, the contract status is executed, not void. Choice D is incorrect because having title doesn't make the original contract voidable.
- A lease agreement where the tenant has moved in and is paying monthly rent, but the lease term continues for another eight months is:
Answer: Executory because both parties have ongoing obligations for the remaining term
The lease remains executory because both parties have continuing obligations throughout the lease term - the tenant must pay rent and the landlord must provide quiet enjoyment. Choice A is incorrect because taking possession doesn't complete all contractual obligations. Choice C is incorrect because there's no such restriction on lease terms. Choice D is incorrect because termination rights depend on lease terms, not voidable status.
- A purchase contract where the seller has delivered the deed but the buyer has not yet paid the purchase price is:
Answer: Executory because the buyer still owes performance of the payment obligation
The contract remains executory because the buyer still has an unfulfilled obligation to pay the purchase price. A contract is only executed when all parties have completed all their obligations. Choice A is incorrect because both parties must complete performance, not just one. Choice B is incorrect because simultaneous performance isn't always legally required. Choice D is incorrect because breach remedies don't make contracts voidable in the legal sense.
- A purchase contract where the buyer obtained financing but failed the property inspection contingency is:
Answer: Voidable because the buyer can choose to waive the inspection issues
When an inspection contingency is not satisfied, the contract typically becomes voidable at the buyer's option - they can choose to proceed anyway (waive the contingency) or terminate the contract. Choice A is incorrect because meeting one contingency doesn't execute the entire contract. Choice B is incorrect because failed contingencies usually create voidable, not void, contracts. Choice D is incorrect because this describes the buyer's choice in a voidable situation, not an executory status.
- A purchase contract that violates fair housing laws by including discriminatory language is:
Answer: Void because it contains illegal provisions that violate federal law
A contract containing illegal provisions that violate federal fair housing laws is void because it lacks a legal purpose, which is an essential element. Choice A is incorrect because illegal contracts cannot be simply modified to become valid. Choice C is incorrect because illegal contracts are void, not voidable. Choice D is incorrect because illegal contracts cannot be executed and executory refers to performance status.
- A purchase agreement where both parties are legally competent adults but the contract contains no consideration is:
Answer: Void because consideration is an essential element required for contract validity
A contract without consideration is void because it lacks one of the essential elements required for a valid contract. Consideration is legally required and cannot be waived. Choice A is incorrect because consideration cannot be waived by agreement. Choice C is incorrect because lack of consideration creates a void contract, not voidable. Choice D is incorrect because void contracts cannot be executed and adding consideration later creates a new contract.
- A buyer's agent has located a property and submitted an offer, but the seller has not yet responded. The buyer representation agreement is:
Answer: Executory because the agent's duties continue until contract completion or expiration
The buyer representation agreement remains executory because the agent's obligations continue beyond just finding property - they include negotiating, managing the transaction through closing, or until the agreement expires. Choice A is incorrect because finding property is just one step, not complete performance. Choice B is incorrect because the representation agreement is separate from the purchase contract. Choice D is incorrect because termination rights depend on contract terms, not voidable status.
- A property management agreement where the manager collected rents but failed to maintain the property as required is:
Answer: Voidable at the owner's option due to breach of contract
The manager's failure to perform required maintenance constitutes a material breach, making the contract voidable at the owner's option - they can choose to terminate or continue the relationship. Choice A is incorrect because management agreements involve multiple obligations beyond rent collection. Choice B is incorrect because breach creates voidable, not void, contracts. Choice D is incorrect because breach consequences take precedence over ongoing obligations.
- An exclusive right-to-sell listing that expired last month without a sale is:
Answer: Executed because the listing period ran its full course as originally agreed
An expired listing is executed because both parties performed their obligations for the agreed time period - the broker marketed the property and the seller cooperated, completing the contract terms. Choice B is incorrect because lack of sale doesn't void a contract that was properly performed. Choice C is incorrect because post-expiration commission claims are separate issues, not executory status. Choice D is incorrect because contract effectiveness doesn't create voidable status.
- An option contract where the optionee has paid the option fee but has not yet exercised the option is:
Answer: Executory because the optionee still has the right to exercise or let expire
An option contract remains executory until the option is either exercised or expires because the optionee still has a decision to make and potential performance pending. Choice A is incorrect because paying the option fee doesn't complete all performance - the decision to exercise remains. Choice B is incorrect because not exercising doesn't void the contract until expiration. Choice D is incorrect because option fees are typically non-refundable consideration.
- A purchase contract where the buyer misrepresented their financial qualifications but still obtained financing is:
Answer: Voidable at the seller's option due to material misrepresentation
Material misrepresentation typically makes a contract voidable at the option of the innocent party (the seller), who can choose to proceed or rescind. Choice A is incorrect because misrepresentation affects contract validity regardless of ultimate performance. Choice B is incorrect because misrepresentation usually creates voidable, not void, contracts. Choice D is incorrect because executory refers to incomplete performance, not breach consequences.
- A purchase contract signed under duress by a seller who was physically threatened is:
Answer: Voidable because the seller can choose to affirm or rescind due to duress
A contract signed under duress is voidable at the option of the party who was coerced, meaning they can choose to affirm the contract or rescind it. Choice A is incorrect because duress affects voluntary agreement even when all elements appear present. Choice B is incorrect because duress makes contracts voidable, not automatically void. Choice D is incorrect because executory refers to performance status, not validity issues from duress.
- An installment sales contract where the buyer has made all required payments and received the deed is:
Answer: Executed because both parties have completed all their contractual obligations successfully
The contract is executed because both parties have fully performed - the buyer made all payments and the seller delivered the deed, completing all contractual obligations. Choice A is incorrect because warranty periods are separate from contract execution status. Choice B is incorrect because merger doesn't make contracts void, and the status is executed. Choice D is incorrect because completed performance doesn't create voidable status for process claims.
- A lease agreement where both landlord and tenant have fully performed their obligations for the entire lease term is:
Answer: Executed because all contractual obligations have been completed
When both parties have completed all their obligations for the entire lease term, the contract is executed. Choice B is incorrect because expiration doesn't make contracts void - they're completed/executed. Choice C is incorrect because completed performance doesn't create voidable status. Choice D would be correct if obligations remained, but the question states both parties have 'fully performed their obligations.'
