Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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Which condition invalidates an enforceable contract?

A party does not benefit from the contract.
Both parties do not mutually agree.
The contract's terms lack clarity.
The purpose of the contract is illegal.

The correct answer is: A party does not benefit from the contract.

The condition that invalidates an enforceable contract is when the purpose of the contract is illegal. For a contract to be valid and enforceable, it must have a legal purpose. If the terms of the agreement involve illegal activities or violate public policy, the contract is considered void. This means that neither party can enforce the contract in a court of law. The presence of illegality undermines the very foundation of contractual agreements. Contracts are intended to be instruments for lawful purposes, and any agreement that goes against the law cannot be upheld. While other options suggest issues that could arise within a contract, such as lack of mutual agreement or unclear terms, these do not inherently render a contract unenforceable in the same definitive manner as an illegal purpose. Hence, the legality of the contract is paramount in determining its enforceability.