Contracts
The most heavily weighted national topic. You must know contract formation, classifications, and how contracts are discharged or breached.
Formation and Classification
A valid contract needs competent parties, mutual assent, consideration, a lawful object, and a writing for real estate under the statute of frauds. Contracts may be bilateral (mutual promises) or unilateral (a promise accepted by performance, like an open listing). They may be executory (not yet completed) or executed (fully performed), and valid, void, voidable, or unenforceable.
Discharge, Assignment, and Breach
Contracts end by performance, agreement, or operation of law. Assignment transfers rights under a contract; novation substitutes a new contract or party and discharges the original. Contingencies allow cancellation if a condition is unmet. On breach, remedies include specific performance, damages, or forfeiture of earnest money, depending on who defaults and the contract terms.