Contracts
CLAO Contract Elements
A concise definition for the California Real Estate Exam study guide.
Definition
CLAO is a study mnemonic for contract elements: Capacity (competent parties), Mutual consent (offer and acceptance), Lawful object, and Consideration.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 3: Contracts, Offers, Contingencies & Remedies →