Ohio Real Estate Salesperson Exam — All Questions

Time is of the essence in a contract means that:

• a.Either party may extend deadlines freely
• b.The contract expires after one year automatically
• c.Performance must occur by the stated dates or a party is in breach✓
• d.The contract has no deadline

A 'time is of the essence' clause makes the stated deadlines binding, so failing to perform on time is a breach. Without such a clause, courts may allow reasonable extensions.

Which of the following would make a real estate contract void rather than merely voidable?

• a.A minor signed it
• b.One party was under duress
• c.One party was defrauded
• d.The purpose of the contract is illegal✓

A contract for an illegal purpose is void from the outset because courts will not enforce an unlawful agreement. Contracts involving a minor, fraud, or duress are typically voidable at the option of the injured or protected party.