Under which scenario would a contract be considered unenforceable?

Prepare for the NSAR Salesperson License Test with flashcards and multiple choice questions, each with hints and explanations. Get ready for your real estate exam!

A contract would be considered unenforceable if it has no legal status. This situation arises when the contract lacks the essential elements required for a legally binding agreement, such as mutual consent, a lawful object, and consideration. If any of these are missing, then the contract cannot be enforced in a court of law. This means that parties involved cannot rely on it to compel performance or seek remedies, as the agreement does not hold any legal validity.

In contrast, a contract that has been breached may still be enforceable, though the aggrieved party can seek remedies through a legal action. Similarly, a contract that was never signed may be disputably enforceable depending on the circumstances, while a contract that has been mutually agreed to be terminated is simply concluded but does not affect its previously legal standing before termination.

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