What does it mean if a contract is unenforceable even when fully executed and performed?

A contract being unenforceable means that, despite all parties having executed and performed the terms of the agreement, it cannot be legally upheld in a court of law. The correct choice highlights a specific type of agreement, known as a net listing, where a broker fails to disclose the amount of compensation to the principal. In real estate, net listings can be problematic because they may not comply with disclosure requirements, leading to challenges regarding the validity of the contract.

In scenarios where a broker does not disclose their compensation, the principal may not fully understand the financial implications as they are left unaware of the broker's commission structure, which could be considered deceptive or unfair. As a result, this lack of transparency can render the contract unenforceable, despite the fact that it may have been carried out.

The other choices address situations that might also lead to unenforceability, but they do not specifically relate to the circumstances of compensation disclosure as a key factor. An unenforceable verbal agreement might arise from the lack of a written contract requirement, while a contract signed under duress points to issues of consent and coercion, and an invalid date typically pertains to the contract’s timeframe being not properly defined. However, it is the failure to disclose a broker's compensation