Maryland Home Improvement PSI Practice Exam

What circumstance could make a signed listing contract voidable?

1. The seller uses an "X" to sign

2. No other broker may show the house

3. The seller is intoxicated at signing

4. The contract specifies a three-week sale limit

The correct answer is: The seller is intoxicated at signing

A signed listing contract can be considered voidable if one of the parties was not in a sound state of mind during the signing process. In the case of the seller being intoxicated at the time of signing, this situation undermines the seller's ability to understand the terms and obligations of the contract fully. Intoxication can create a scenario where a party lacks the requisite mental capacity to enter into a binding agreement, making the contract voidable at the discretion of the intoxicated party when they regain full capacity. Other options do not create similar legal implications. If a seller uses an "X" to sign, it may raise questions about the authenticity of the signature but does not necessarily make the contract voidable unless it can be shown there was a lack of intent to sign. Asserting that no other broker may show the house or setting a specific sale limit do not impact the legality or validity of the contract; these are terms that can be negotiated and agreed upon. Therefore, the state of intoxication is the factor that directly affects the enforceability of the contract.