Contracts

    Valid Contract

    An agreement that has the four essential elements: competent parties, mutual assent, a legal purpose, and consideration.

    A valid contract is one that meets all four essential requirements: competent parties, mutual assent through offer and acceptance, a legal purpose, and consideration. A valid contract is legally binding and enforceable.

    For the sale of real property, a valid contract must also satisfy the Statute of Frauds by being in writing and signed by the party to be bound.

    On the exam

    Memorize the four essentials: competent parties, mutual assent, legal purpose, and consideration. Real estate contracts add a writing requirement.

    Exam trap

    Earnest money is not one of the four essentials. Consideration is required, but the deposit itself is not.

    Tested in

    Contracts (12% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.