What is the exam-ready answer?
| Roadmap lesson | 81 of 500 |
|---|---|
| Official syllabus topic | Contract Validity and Enforceability |
| Official PSI area | Contracts |
| Published area weight | 19% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Capacity and legality
Parties must have required legal capacity, and the objective cannot violate law or public policy. Capacity problems often make an agreement voidable rather than automatically void.
Agreement and consideration
Mutual assent requires an offer and acceptance of the same material terms. Consideration is bargained-for legal value and need not be equal in economic amount.
Writing and signatures
The statute of frauds requires specified real estate agreements to be evidenced by a sufficient signed writing. Electronic records and signatures may satisfy applicable requirements.
Four classifications
Valid, void, voidable, and unenforceable describe different legal consequences. An executed or executory label instead describes performance status.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A competent buyer and seller orally agree to a year-long future purchase of land but never sign a writing.
Reason it through. The parties may have discussed all terms, but a land-sale agreement ordinarily falls within a writing requirement.
Answer. The agreement may be unenforceable under the statute of frauds rather than void for an illegal objective.
Common exam traps
- Calling every defective agreement void
- Assuming consideration must be cash
- Confusing enforceability with formation
- Calling an executory contract void
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which agreement has no legal effect from inception?
- A. Void
- B. Voidable
- C. Executory
- D. Unilateral
Show answer and explanation →
Answer: A. Void
A void agreement cannot create an enforceable contract.
Question 2Who can usually avoid a voidable contract?
- A. Any stranger
- B. The party protected by the legal rule
- C. Only the broker
- D. Only the appraiser
Show answer and explanation →
Answer: B. The party protected by the legal rule
Voidability protects a particular party, who may generally affirm or rescind subject to law.
Question 3What is consideration?
- A. A bargained-for legal value
- B. Only earnest money
- C. Only the purchase price
- D. A recorded deed
Show answer and explanation →
Answer: A. A bargained-for legal value
Consideration is the exchange of legal value or promises, not only cash.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Contract Classifications. Continue to roadmap lesson 82 and build on this decision rule.
Return to the Contracts hub to see every official branch and the complete lesson sequence for this content area.