Contracts
The most heavily weighted national topic. You must understand capacity, validity, and the remedies available when a contract is breached.
Capacity and Validity
A valid contract requires competent parties, mutual assent, consideration, a lawful object, and a writing for real estate under the statute of frauds. A contract with a minor is generally voidable at the minor's option, because minors lack full capacity. Contracts may be valid, void (no legal effect), voidable (one party may cancel), or unenforceable. A counteroffer terminates the original offer.
Remedies for Breach
If a buyer defaults, the seller may retain earnest money as liquidated damages or seek other remedies. If a seller defaults, the buyer may seek specific performance, an equitable remedy compelling conveyance because each parcel is considered unique, or money damages. Rescission cancels a contract and returns the parties to their prior positions; reformation corrects a written mistake.