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29 Cards in this Set
- Front
- Back
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An expressed contract:
I. arises from the stated intent of the parties II. is created by the acts of the parties III. may be a contract for forbearance |
Answer: I and III only
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All of the following are true of contracts EXCEPT that they_______.
A) may be agreements to do a certain thing B) may arise from the acts of the parties C) may be agreements NOT to do a certain thing D) must be based on an expressed agreement |
Answer: D
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Charles made an oral offer to sell his lawn mower to Daniel for $20 if Daniel would agree not to operate it before 10 AM on weekends. Daniel accepted the offer. This agreement is:
I. an expressed contract II. a contract for forbearance III. a parol contract IV. invalid |
Answer: I, II, and III
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Contracts between adults and minors (children) are usually treated by law as _________.
A) voidable by either party B) voidable by the minor C) illegal D) enforceable |
Answer: B
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When Ed listed his home for sale, he promised to pay the broker a commission of 6 percent of the sale price if he sold the property. The broker promised to advertise the property and promote its sale through the multiple listing service. This agreement was__________.
A) void as there was no valuable consideration B) a unilateral contract C) unenforceable D) a bilateral contract |
Answer: D
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Brown agreed to sell her house to Green. They have each signed a contract of sale which calls for settlement within 30 days. During this 30-day period, the contract of sale is an:
I. executory contract II. expressed contract |
Answer: Both I and II
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Which of the following, when given as the consideration in a contract, would NOT be a valuable consideration?
A) love B) money C) goods D) services |
Answer: A
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Blue agreed to purchase Green's property for $100,000. She gave Green a deposit of $5,000 and agreed to make a total down payment of $20,000, the balance to be paid by a mortgage loan of $80,000. What was the consideration in this agreement?
A) $100,000 B) $5,000 C) $20,000 D) $15,000 |
Answer: A
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Jim wrote a letter to Allan in which he offered to sell Allan his home for $100,000. Under the terms of this offer:
I. Jim is the offeror II. Allan is the offeree |
Answer: Both I and II
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Allan rejected Jim's offer to sell him his home and offered Jim $90,000 for the property. Which of the following statements is/are correct?
I. Jim is the offeror II. Allan is the offeror III. Allan's offer to Jim is a counteroffer |
Answer: II and III only
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When Sue sold her home to Sally, she was unaware that the house was infested with termites. This was later discovered by Sally. Sue was guilty of:
I. fraud II. innocent misrepresentation III. mistake |
Answer: II only
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Ed failed to advise the buyers of his property of a leaky roof. The buyers discovered it before the sale was settled. Which is true?
I. There was no meeting of the minds II. Ed was guilty of fraud III. The sale contract was voidable by the buyers IV. Ed was guilty of innocent misrepresentation |
Answer: I, II, and III
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Which of the following need NOT be in writing in order to be an enforceable contract?
A) a deed to real property B) a contract for the sale of real property C) a mortgage on real property D) a lease for 1 year |
Answer: D
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Fraud can result from:
I. giving false information II. withholding relevant information III. innocently giving mistaken information |
Answer: I and II only
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Which of the following types of contracts could NOT be assigned even though they did not contain an anti-assignment clause?
A) contracts of sale B) deeds C) leases D) options |
Answer: B
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With the permission of the landlord, Green's lease on a commercial building was taken over by Brown. Green was released from further liability under the lease. The original lease to Green was terminated by:
I. acts of the parties II. novation |
Answer: Both I and II
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Wilson listed his home for sale with a real estate broker for a period 120 days. No buyer was found within this period. On the 121st day the listing would be terminated by:
I. rescission II. expiration of time III. mutual agreement IV. destruction |
Answer: II only
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White sold his farm to Blue under a written contract of sale which did not contain an anti_assignment clause. Blue later assigned the contract of sale to Green. Until the sale was settled, the equitable title was held by_______.
A) Blue B) White C) Green D) Blue and Green |
Answer: C
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In most states, in the absence of a contractual agreement to the contrary, the risk of casualty loss to a property under a contract of sale is borne by the:
I. purchaser II. seller III. purchaser and seller equally |
Answer: II only
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Under the Uniform Vendor and Purchaser Risk Act, the risk of casualty loss to a property under a contract of sale falls upon the seller until:
I. possession is taken by the buyer II. title passes to the buyer |
Answer: Either I or II
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Under an option, which of the following statements is true?
A) The optionee must sell to the optionor B) The optionor must sell to the optionee C) The optionee must buy from the optionor D) The optionor must buy from the optionee |
Answer: B
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Blue gave Red an option for thirty days to purchase her property for a consideration of $500. There was no anti-assignment clause in the option. Which of the following statements is NOT correct?
A) Red is the optionee B) Blue is the optionor C) Blue can force red to buy the property D) Red may assign this option to a third party |
Answer: C
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Which of the following statements is correct if Red has an option to buy Blue's property?
I. Red may purchase the property at any time within the option period. II. Red will forfeit the consideration if he does not exercise the option. |
Answer: Both I and II
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Brown's lease on his residence gives him the first right of refusal to purchase the property if it is offered for sale. Which of the following would be specified in the terms of this agreement?
I. the sale price II. the terms of the sale |
Answer: Neither I nor II
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Blue sold his house to Red under a contract of sale which called for settlement within 30 days. Blue later decided that the sale price was too low and refused to settle on the sale. At his option, Red could________.
A) sue for specific performance B) rescind the contract C) any of the answers shown D) sue for monetary damages |
Answer: C
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An action brought to compel the defaulting party to perform according to the terms of a contract is known as a suit for:
I. liquidated damages II. specific performance |
Answer: II only
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If a purchaser breaches a contract for the sale of real estate, the seller may:
I. demand forfeiture of the earnest money deposit as liquidated damages if specified in the contract II. file a suit for monetary damages |
Answer: Either I or II
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An installment contract may also be known as a:
I. land contract II. contract for deed |
Answer: Both I and II
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The purchaser pays for the property and receives a deed at settlement when real property is sold under a:
I. contract for deed II. contract for sale |
Answer: II only
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