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28 Cards in this Set

  • Front
  • Back
A contract in which mutual promises are exchanged at the time of signing (execution) is termed:

A. multilateral
B. unilateral
C. bilateral
D. promissory
C. bilateral
Termination of a contract by mutual agreement of the parties is called:

A. partition
B. patent
C. rescission
D. reintermediation
C. rescission
For contract in general, all of the following are essential elements EXCEPT:

A. competent parties
B. offer and acceptance
C. legality of objects
D. writing
D. writing
All of the following statements about contracts are tru EXCEPT:

A. a contract may be an agreement to do a certain thing
B. contracts may arise out of implication
C. a contract may be an agreement not to do a certain thing
D. All contracts must be based on an express agreement
D. All contracts must be based on an express agreement
All of the following statements are true in Illinois EXCEPT:

A. Illinois citizens reach the age of majority at age 18
B. a lease for more than one year must be in writing to be inforceable in court
C. blanks in real estate contracts may be filled in after all parties have signed the contract
D. Illinois licensee are not allowed to draft real estate contracts
C. blanks in real estate contracts may be filled in after all parties have signed the contract
Which of the following is the basis of duress?

A. fear
B. mistake
C. indefiniteness
D. illusion
A. fear
An otherwise valid contract that cannot be enforced by legal action because of lack of compliance with the Statute of Frauds is:

A. voidable by either party
B. void on its face
C. voidable by the offeree
D. unenforceable
D. unenforceable
A contract to sell real property may be terminated by all of the following EXCEPT:

A. complete performance
B. death
C. mutual assent
D. breach of contract
B. death
Which of the following has the effect of terminating contracts?

A. consideration
B. bankruptcy
C. exercise
D. assignment
B. bankruptcy
A listing contract creates an agency relationship between:

A. buyer and seller
B. Buyer and lender
C. broker and seller
D. broker, seller, and buyer
C. broker and seller
Brown has listed a house for sale for $90,000. Cox makes a written offer of $86,500, which Brown accpets. Under the terms of this agreement:

A. A. Brown was the offeror
B. Cox was the offeree
C. there was a meeting of the minds
D. a unilateral contract was created
C. there was a meeting of the minds
A contract between an adult and a minor is usually:

A. voidable by eith party
B. voidable by the minor
C. voidable by the adult
D. void on its face
B. voidable by the minor
An owner employs a broker to market the owner's property and agrees to pay the broker a percentage of the sales price if the property is sold by anyone during the specified time period of the broker's employment. This agreement is:

A. exclusive right-to-sell listing
B. net listing
C. exclusive agency listing
D. open listing
A. exclusive right-to-sell listing
Deliberate misrepresentation of a material fact, made with the intent that the other party act upon it to his detriment, is:

A. misrepresentation
B. undue influence
C. fraud
D. duress
C. fraud
The clause in the listing contract that protects the broker's commission entitlement beyond the listing period in the event of sale by the owner to a prospect who was in fact indtroduced to the property by the broker or another agent of her listing firm is called:

A. forteiture clause
B. carryover clause
C. settlement clause
D. exclusive right clause
B. carryover clause
All of the following should always be present in offers and contract of sale EXCEPT:

A. date of final settlement
B. date possession will be given to purchaser
C. date of commission payment
D. date of contract inception
C. date of commission payment
Which of the following most accurately describes an agreement wherin a property owner agrees to convey title to the property when another party satifies all obligations agreed to in the contract?

A. lease contract
B. listing contract
C. level contract
D. land contract
D. land contract
When a purchaser and seller have a valid contract for the sale of real property, the purchaser has:

A. legal title
B. no title
C. equitable title
D. constructive title
C. equitable title
When a party purchases an option, the optionee is purchasing:

A. contract liability
B. time
C. land
D. exercise
B. time
Owner Appleton has given Miller an option for 30 days to purchase Appleton's farm at a specified price. Under the terms of an option, which of the following statements would NOT be correct?

A. appleton is the optionor
B. Miller is the optionee
C. Miller can require Appletons to sell at any time during the next 30 days
D. Appleton can require Miller to purchase within 30 days
D. Appleton can require Miller to purchase within 30 days
All of the following are requirements of options EXCEPT:

A. must be in writing to be enforceable
B. must contain a description of the property
C. must be exercised
D. must contain a recital of consideration
C. must be exercised
Upon the buyer's offer, the seller accepts all of the terms of the offer except the amount of earnest money; the seller than agrees to accept an amount 50 percent higher than the buyer had offered. This fact is promptly communicated to the offeree by the real estate agent. Which of the following most accurately describes these events?

A. the communicated created a bilateral contract
B. the seller accepted the buyer's offer
C. the seller conditionally rejected the buyer's offer
D. the seller rejected the buyer's offer and made a counteroffer to the buyer
D. the seller rejected the buyer's offer and made a counteroffer to the buyer
The Illinois Residential Real Property Disclosure Act affects the sale of:

A. commercial properties with underground storage tanks
B. residential properties with underground storage tanks
C. residential properties of four or fewer units
D. residential properties of more than four units
C. residential properties of four or fewer units
Under the Illinois Residential Real Property Disclosure Act, if the buyer receives the completed disclosure form before entering into a contract to purchase, the recission period is:

A. three days if a defect is revealed on the form
B. three days regardless of whether or not a defect is revealed on the form
C. five days if a defect is revealed on the form
D. there is no recission period
D. there is no recission period
Which of the following would not be required to complete a disclosure statement under Illinois Residential Property disclosure Act?

A. an owner who has not lived in the property in the past 12 months
B. an owner who has always used the property as a rental
C. a builder selling a new property that has never been occupied
D. a seller of a four-unit residential property
C. a builder selling a new property that has never been occupied
In real estate contracts, the damages for breach are usually:

A. liquidated
B. consequential
C. compensatory
D. actual
A. liquidated
Whose responsibility is it to complete the Illinois Residential Real Property Disclosure form?

A. the seller
B. the seller with the assistance from his attorney
C. the broker
D. the broker with assistance from his attorney
A. the seller
A person adjudicated incompetent eneters into a lease. The guardian of this person is aware of the situation and has approved the lease arrangement. The lease is:

A. void
B. voidable
C. enforceable
D. illegal
C. enforceable