Oregon Real Estate Practice Test 2025 – Complete Exam Prep

Real estate contracts are fundamentally built on certain essential characteristics, and good faith, while important in many transactions, is not a specific characteristic that defines a contract.

An offer is the initial proposal made by one party to another, outlining the terms under which they are willing to engage in a transaction. Acceptance occurs when the other party agrees to the terms of the offer, creating a mutual understanding between the parties involved. Consideration refers to something of value that is exchanged between the parties, which is essential in forming a legally binding contract.

Good faith, on the other hand, is a principle that emphasizes honesty and fairness in the performance of contractual obligations and the negotiation process. While the parties are expected to act in good faith throughout the transaction, it is not a defining characteristic of a real estate contract itself. Therefore, the focus on the primary elements of offer, acceptance, and consideration underscores why good faith is not classified as a characteristic of a contract in this context.