The correct answer is B, Contract. A contract is a legally enforceable agreement creating obligations between parties.
Core contract requirements generally include competent parties, mutual assent through offer and acceptance, consideration, lawful purpose, and genuine consent. Certain real estate agreements also must satisfy the Statute of Frauds or other statutory formalities.
Consideration represents the bargained-for legal value exchanged between the parties. One party can promise money while the other promises to transfer property, perform services, grant possession, or undertake another legal obligation.
An easement is a property interest allowing specified use of another ' s land. A deed restriction limits the use of real estate. A mortgage lien secures a debt against property. Although each can arise from contractual arrangements, none is the general definition of a contract.
Candidates should also distinguish valid, void, voidable, and unenforceable contracts and understand unilateral versus bilateral and executed versus executory agreements.
Study Guide Reference: Contracts — Essential Elements, Consideration, Competency and Enforceability.
