Chapter 10: Real Estate Contract Law Flashcards
An important legal feature of a contract is…
It represents a “meeting of the minds”
According to contract law, every valid contract is also…
Enforceable or unenforceable
The guardian for a mentally incompetent party enters into an oral contract with another party to buy a trade fixture. This contract…
Is possibly valid and enforceable
A prospective homebuyer submits a signed offer to buy a house with a condition that the seller pays financing points at closing. The seller disagrees, crosses out the points Klaus, and signs, and returns the document to the buyer. At this point, assuming all other contract validity items are in order, the status of the offer is…
A counter offer
As part of the construction contract between a contractor and a buyer, the contractor promises to complete construction by November 20. This promise can be construed as…
Valuable consideration
An unscrupulous investor completes a contract with a buyer to sell the property the investor does not own. The sale contract for this transaction…
Is void
A homeowner encourages an agent to aggressively persuade a buyer to purchase his house by overinflating historical appreciation rate. The agent and the seller agree to 25% annual appreciation would work, even though this figure is four times the actual rates. The pitch succeeds, and the seller excepts the buyer’s resulting offer. The contract is…
Voidable
The statute of limitations requires that parties to a contract who have been damaged or who question the contract provisions…
Must act within a statutory period
The purpose of the Statute of Frauds is to…
Require certain conveyance related contracts to be in writing
The seller immediately accepts a buyer’s offer but waits eight days before returning except a document to the buyer. Meanwhile, the offer has expired. Which of the following is true?
The buyer has no obligations to the seller whatsoever
A buyer agrees to all terms of a seller’s offer except the price. The buyer lowers the price by $1000, signed the form, and mailed it back to the seller. At this point, the sellers offer…
Is void
A buyer submits an offer to the seller. Two hours later, the buyer finds a better house, cause the first seller, and withdraw the offer. Which of the following is true?
The original offer is legally extinguished
Real estate contracts that are not personal service contracts…
May be assigned
Which of the following contracts must be in writing to be enforceable?
A two-year lease
A good example of a unilateral contract is…
An option to purchase
