New Jersey Real Estate Exam Practice Question
A buyer mailed an offer to purchase a property at the full price and terms of a listing agreement. Which of the following essential elements is missing to form a valid contract?
Correct Answer: B
Rationale: To form a valid contract, acceptance is crucial. In this scenario, the buyer's offer must be accepted by the seller for a binding agreement to exist. Without the seller’s acceptance, no contract is formed, even if all other terms are met.
Consideration (A) refers to something of value exchanged, which is present in the offer. Earnest money (C) is not essential for contract validity but serves as a deposit showing the buyer's good faith. Legal purpose (D) ensures the contract is for a lawful objective, which is typically satisfied in real estate transactions. Thus, acceptance is the key missing element needed to complete the contract.
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