Massachusetts Real Estate License Practice Test

The term that describes a situation where a property owner has the right to cancel a contract is "voidable." A voidable contract is one that is valid and effective on its face but may be legally unenforceable at the option of one of the parties involved. In real estate, certain situations can make a contract voidable, such as when a party is a minor, if there was a misrepresentation, or if undue influence or coercion was present at the time the contract was made.

This means that the property owner has the ability to affirm or reject the contract without liability, which highlights their control over the agreement and the circumstances that may have influenced its creation. It's important for property owners and real estate professionals to understand the implications of voidable contracts, as they may decide to proceed with, modify, or entirely cancel the agreement based on their specific circumstances.

The other choices pertain to different legal statuses of contracts; for example, a void contract is one that is not legally enforceable from the beginning, while an enforceable contract is valid and can be upheld in court. An irrevocable contract, on the other hand, is one that cannot be altered or canceled once agreed upon, which is contrary to the concept of a void