A-Z Contract Law Review

Question 1

Subject to clauses in deeds are also known as:

Answer 1

Habendum clauses

Question 2

To sign a contract is to________ it.

The person who signs is called a(n)_________.

Answer 2

Execute, signatory

Question 3

A contract which is still in process, and is not in default is:

Answer 3

Executory

Question 4

You know the basement leaks, but say “oh, no the basement doesn’t leak at all.” This is an example of:

Answer 4

Positive fraud

Question 5

You did not purposely deceive, but with reasonable care of the problem could have been avoided. This is and example of:

Answer 5

Constructive fraud

Question 6

Penalties for committing non-intentional (constructive) fraud would be damages, and punitive costs.

Answer 6

False

Fines and imprisonment cannot be levied

Question 7

A clause providing for a predetermined money settlement for anticipated default (such as earnest money) it’s called a __________ damages clause.

Answer 7

Liquidated damages

The default and it’s penalties are anticipated and specifically and clearly stipulated in a liquidated damages clause in the contract

Question 8

All contracts are signed a bowl, without the approval of the other party, except for those involving ________ ( which includes agency), are those that specifically prohibit it (such as a deal on sale clause in a loan).

Answer 8

Personal services

Question 9

The concept that says the agent his first took the buyer to the property earns the commission is called:

Answer 9

To and through

To and through doctrine: and approach which says the agent his first show the property to the buyer earns the selling portion of the commission.

Procuring cause doctrine: A doctor and governing who gets the selling portion of the commission. It says the agent who set up an uninterrupted chain of events that led to the closing earned the commission

Question 10

T/F: An option is a contract giving a potential buyer the right to buy or not to buy a property. It might contain a specific time period, the purchase price, the terms of the sale, and the consideration. The option consideration must be nonrefundable.

Answer 10

True

Question 11

The seller can retain the right to sell to specific buyers without paying a commission for putting________ in the listing agreement.

Answer 11

Exclusion clause