Ch. 13 - Re Contracts

Front 1

What is an important legal characteristic of an option to buy agreement?

Back 1

The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so.

Front 2

A contract for deed is also called a

Back 2

land contract

Front 3

In what section of a sales contract would you find information regarding the acceptable use of funds by the escrow agent?

Back 3

Escrow agreement

Front 4

Concerning contracts of deed, Texas ______________.

Back 4

has no standardized contract for deed.

Front 5

A contact agreement to sell alcohol to minor would be considered

Back 5

void

Front 6

Which of the following TREC rules gives information about the broker’s authority?

Back 6

537.11

Front 7

A contract for deed is attractive to

Back 7

marginally qualified buyers

Front 8

a voidable contract is _____________________

Back 8

subject to cancellation by a party to the contract who is believed to have acted under duress.

Front 9

Which sales contract section allows parties to amend dates and deadlines if both give written approval?

Back 9

time is of the essence

Front 10

Which of the following contracts must be in writing to be enforceable?A parol contrac

Back 10

a two-year lease

Front 11

The guardian for a mentally incompetent party enters into an oral contract with another party to buy a trade fixture. What is true about this contract?

Back 11

it is possibly valid and enforcable

Front 12

What is the most common sales contract addendum?

Back 12

Seller's property condition disclosure

Front 13

Which of the following is NOT an acceptable method to send a sales contract notice?

Back 13

phone message

Front 14

What action might a buyer take if the seller defaults?

Back 14

The buyer may sue for specific performance, or for cancellation of the agreement and damages.

Front 15

Which contract provision allows for the transfer of the contract to another person?

Back 15

assignment of a contract

Front 16

Which of the following is a good example of a unilateral contract?

Back 16

an option to buy

Front 17

The breach of contract is also called ____________.

Back 17

default

Front 18

An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction?

Back 18

it is void

Front 19

What is the term given to a contract that has been fully performed and fulfilled?

Back 19

executed contract

Front 20

Liquidated damages are ____________.

Back 20

a total amount due to a damaged party in the event of a breach, which is stated in a contract.

Front 21

During the conditional sales contract period,

Back 21

the vendor retains legal title and the vendee acquires equitable title.

Front 22

Which of these forms was NOT promulgated by TREC for use by licensees?

Back 22

improved property contract

Front 23

What does the Statute of Limitations require that parties to a contract who have been damaged or who question the contract's provisions do?

Back 23

act within a statutory period

Front 24

In what part of a sales contract would you find information regarding the owner's knowledge that there are no undisclosed building codes or zoning violations?

Back 24

compliance with laws

Front 25

How is a back up contract recorded?

Back 25

filed as an addendum

Front 26

Which of the following statements best defines an expressed contract?

Back 26

All the terms of a sales contract have been listed, but no offer has been made.

Front 27

Which of the following contracts establish client relationships and provide for compensation?

Back 27

none of the above

(lease contracts, mortgage contracts, promissory agreements)

Front 28

A contract for deed is attractive to

Back 28

marginally qualified buyers

Front 29

An unused option to buy

Back 29

terminates at the expiration date.

Front 30

Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. What type of contract does Bill hold?

Back 30

executory

Front 31

Which of the following contracts must be in writing to be enforceable?

Back 31

a two year lease

Front 32

In what part of a sales contract would you find information regarding property located seaward of the Gulf Intracoastal Waterway?

Back 32

in an addendum

Front 33

In a sales contract, if mediation is chosen as an option, the costs will be

Back 33

divided equally between the parties.

Front 34

What is the purpose of the Statute of Frauds?

Back 34

Require certain conveyance-related contracts to be in writing.

Front 35

Liquidated damages are ____________.

Back 35

a total amount due to a damaged party in the event of a breach, which is stated in a contract.

Front 36

Which of the following is NOT an acceptable method to send a sales contract notice?

Back 36

phone messages

Front 37

Which document sets forth the terms and conditions between parties who are involved in an escrow?

Back 37

escrow agreement

Front 38

In Texas, the statute of limitations to sue for breach of contract in real estate is:

Back 38

four years from the time the breach occurred.

Front 39

What section of a sale contract describes the ramifications of the property being damaged or destroyed prior to closing?

Back 39

casualty loss

Front 40

In what part of a sales contract would you set the transfer of occupancy date?

Back 40

possession

Front 41

Which of the following contracts must be in writing to be enforceable?

Back 41

a two year lease

Front 42

An option-to-buy is a(n)

Back 42

enforceable contract

Front 43

In a option-to-buy, which party is the potential seller?

Back 43

the optionor

Front 44

A contact agreement to sell alcohol to minor would be considered

Back 44

void

Front 45

What section of a sale contract describes the ramifications of the property being damaged or destroyed prior to closing?

Back 45

casualty loss

Front 46

Which provision of TREC NO 20-13 says that the buyer has a right to have inspections?

Back 46

property condition

Front 47

Liquidated damages are ____________.

Back 47

a total amount due to a damaged party in the event of a breach, which is stated in a contract.

Front 48

An option to buy is

Back 48

a unilateral agreement

Front 49

Which of the following statements best defines an expressed contract?

Back 49

All the terms and covenants of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing.

Front 50

In what section of a sales contract would you find information regarding the acceptable use of funds by the escrow agent?

Back 50

escrow agreement

Front 51

Which of the following is a good examp`le of a unilateral contract?

Back 51

an option to buy

Front 52

What occurs when a option to buy is exercised?

Back 52

A bilateral sale contract is created and both parties are bound to perform.

Front 53

What is the most common sales contract addendum?

Back 53

sellers property conditions disclosure

Front 54

Mike signed a rental agreement for his friend Norm. What must be enforced for this contract to be binding?

Back 54

power of attorney

Front 55

According to the Texas Rules, which of the following reasons is NOT considered to be an exception to the requirement for using promulgated forms?

Back 55

Transactions for which a contract form has been prepared by a customer to the transaction

Front 56

What action might a buyer take if the seller defaults?

Back 56

The buyer may sue for specific performance, or for cancellation of the agreement and damages.

Front 57

What is one advantage of a contract for deed?

Back 57

Gives the seller certain tax benefits.

Front 58

What are the four types of legal contracts?

Back 58

Valid

valid but unenforceable

void

voidable