If a buyer makes a full-price offer after learning of a mortgage lending curtailment and the seller instructed the agent to inform them, what is the status of the contract?

In this scenario, the status of the contract is considered voidable. This situation arises because the buyer has made a full-price offer after being informed about the mortgage lending curtailment—a significant change that could affect their ability to finance the purchase.

Voidable contracts are those that are valid and enforceable, but the parties have the option to affirm or reject the contract under certain conditions. Here, the circumstance of the mortgage lending curtailment provides the buyer with a reason to reconsider their offer and potentially withdraw from the contract without facing legal repercussion.

Enforceable contracts are binding and must be upheld by all parties involved, while void contracts are those that cannot be legally enforced at all, and a void status means the contract never had any legal effect. A null contract, although similar to void, suggests that it was invalid from the outset, which does not apply here as the contract was valid until the buyer learned of the curtailment. Thus, the contract remains valid until the buyer decides to exercise their option to void it.