4.1

Question 0

For a contract to be valid, there must be a meeting of the ______.

Answer 0

Minds

Question 1

To have a valid contract, you must be at least ______ years old, sane, and sober.

Answer 1

18

Question 2

In contracts, the term “consideration” means ________.

Answer 2

Something of value

Question 3

True or False:

A contract is valid, even if the purpose is not legal.

Answer 3

False

Question 4

True or False:

A valid contract may be misunderstood, but cannot be fraudulent.

Answer 4

False

Question 5

True or False:

A real estate contract must be in writing to be valid.

Answer 5

True

Question 6

True or False:

For a contract to be enforceable, it must be valid and be enforceable in a court of law.

Answer 6

True

Question 7

When at least on e of the parties has the right to terminate a contract, it is _________.

Answer 7

Voidable

Question 8

______ is a term that means to avoid doing something.

Answer 8

Forbearance

Question 9

_____ is a kind of contract that gives someone the right to purchase a property within a specific period of time.

Answer 9

Option contract

Question 10

_______ kind of contract is one in which the circumstances imply that parties have reached an agreement, even though they have not done so in writing.

Answer 10

Implied in fact

Question 11

_____ is a kind of contract that means two parties make a promise to each other.

Answer 11

Bilateral

Question 12

______ is the process that transfers all rights and obligations from the original owner to the new owner.

Answer 12

Novation

Question 13

A document page that adds to a contract is called a/an ______.

Answer 13

Addendum

Question 14

A document page that amends a contract is called a/an ________.

Answer 14

Amendment

Question 15

______ is a condition that is intended to go into effect, or has the potential of becoming effective, at a future time.

Answer 15

Executory

Question 16

A legal _______ is when a duty required by the contract cannot legally be performed.

Answer 16

Impossibility

Question 17

To make a contract enforceable it must be valid, meet all legal requirements, and be binding and enforceable in _____.

Answer 17

Court

Question 18

If a contract is held to be ______, the contract is considered never to have come into existence.

Answer 18

Void

Question 19

A contract is _______ if one of the parties has the option to terminate the contract.

Answer 19

Voidable

Question 20

A/an ______ contract is one in which the terms are expressed in words, either oral or written.

Answer 20

Express

Question 21

In a _______ contract, only one party to the contract makes a promise.

Answer 21

Unilateral

Question 22

An _____ of a contract is when a party transfers duties and/or obligations but not responsibility of the contract.

Answer 22

Assignment

Question 23

A contract transferred by the _____ process transfers all rights and obligations from the original owner to the new owner.

Answer 23

Novation

Question 24

When both parties have performed their duties under the contract, the contract is _______.

Answer 24

Executed

Question 25

______ is when both parties agree to cancel the contract.

Answer 25

Rescission

Question 26

______ of contract is when a binding agreement is not honored by one or more of the parties to the contract due non-performance or interference with the other party’s performance.

Answer 26

Breach

Question 27

The statute of _____ is a maximum period of time after certain events happen that legal proceedings based on those events may be initiated.

Answer 27

Limitations

Question 28

Specific _____ is an order of the court that requires a party to perform a specific act.

Answer 28

Performance

Question 29

_____ is a contractual term that means damages are to be paid to one party if the other party should breach the contract.

Answer 29

Liquidated damages

Question 30

______ damages means excessive liquidated damages, and are valid under the common law.

Answer 30

Penal

Question 31

True or False:

Each party must ahve the intent to be bound for a contract to be valid.

Answer 31

True

Question 32

True or False:

There must be a communicated acceptance of a contract for it to be valid.

Answer 32

True

Question 33

A debit to the seller on the closing settlement statement _____ the amount of money the seller receives at the closing.

Answer 33

Decreases

Question 34

A debit to the buyer on the closing settlement statement _______ the amount of money the buyer is responsible for bringing to closing.

Answer 34

Increases

Question 35

True or False:

Closing statement credits are receipts.

Answer 35

True

Question 36

A person needing to cross another’s property to reach a road is an example of _______.

Answer 36

Easement by necessity

Question 37

If a person dies ______ they have a will.

Answer 37

Testate

Question 38

If a person dies ______ they do not have a will.

Answer 38

Intestate

Question 39

If a person dies testate his or her interest in the property will be transferred to _____.

Answer 39

The devisee named in his will

Question 40

The statutory period for adverse possession in Minnesota is ______ years.

Answer 40

15

Question 41

_______ is the loss of property for nonpayment of debts.

Answer 41

Involuntary alienation

Question 42

When a person dies, the legal process his or her estate must go through is _______.

Answer 42

Probate

Question 43

______ is when a decedent dies without leaving a will.

Answer 43

Intestate

Question 44

______ is the act of giving real property by will.

Answer 44

Devise