Chapter 10 Flashcards
A retroactive return to a seller’s and buyer’s former, pre-contract positions is called a:
a. release and cancellation.
b. rescission and restoration.
c. recession and waiver.
d. None of the above.
B
A seller may only cancel a transaction via a properly worded contingency provision when:
a. the seller has performed all acts which are required to precede the event triggering cancellation.
b. the event fails to occur by the appointed date.
c. the seller performs all other acts necessary on the seller’s part to close.
d. All of the above.
D
A buyer may place a seller in default when:
a. a date crucial to the continuation of the transaction has passed.
b. the event called for in the purchase agreement failed to occur by the appointed date.
c. the buyer fully performed all activities required by the appointed date.
d. All of the above.
D
The authorization-to-extend provision requires the person with a right to cancel on the failure of a contingency to occur to allow the defaulting party a reasonable, additional time period in which to perform.
a. True
b. False
A
Before escrow will call for closing funds, the seller needs to have fully performed.
a. True
b. False
A
Agency disputes commonly arise during the __________ period.
a. marketing
b. escrow
c. post-closing
d. All of the above.
D
When a sales transaction is rescinded, unknown and unsuspected claims may be waived using a general release agreement.
a. True
b. False
B
After a breach of a purchase agreement, if the property resold for $850,000 and the original purchase price was $550,000, the buyer’s price-to-value demand for recovery is:
a. $850,000.
b. $550,000.
c. $480,000.
d. $300,000.
D
For a buyer to recover special damages, the expenses incurred need to be a natural and unavoidable result of the seller’s breach.
a. True
b. False
A
A buyer is entitled to 10% interest on amounts recovered for expenses incurred preparing to take title.
a. True
b. False
A
