Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Chapter 11 - Principles of Real Estate Contracts > Flashcards

Chapter 11 - Principles of Real Estate Contracts Flashcards

1
Q

A void contract is one that is …

A

not legally enforceable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The legal proceeding or legal action brought by either the buyer or the seller under a purchase contract to enforce the terms of the contract is known as …

A

specific performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The essential elements of a contract include all of the following EXCEPT

  • offer and acceptance
  • notarized signatures
  • competent parties
  • consideration
A

-Notarized Signatures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A written real estate contract is assumed to be the complete agreement of the parties because of the …

A

parol evidence rule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The term ‘rescind’ means

A

cancel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

All of the following are essential to the formation of a contract EXCEPT

  • Offer
  • Acceptance
  • Consideration
  • Performance
A

-Performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A bilateral contract is one in which

A

-the promise of one party is given in exchange for the promise of the other party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The law that requires real estate contracts to be in writing to be enforceable is the

A

-statue of frauds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT

  • sue the seller for a specific performance
  • rescind the contract and recover the earnest money
  • sue the seller for damages
  • sue the broker for non-performance
A

-sue the broker for non-performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Every real estate agent contract must have

A

an offer and acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

At the time a buyer was negotiating the purchase of a lot on which to build a new home, the seller claimed that the soil was firm enough to support construction of a building when, in fact, the seller knew it was not. This contract is …

A

voidable by the buyer because of fraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

After the buyer and the seller have signed a sales contract, the seller changes his mind and defaults. The buyer sues the seller to force him to go through with the contract. This is known as a suit for …

A

-specific performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A person must accept an offer to enter into a contract before …

A

the death of the offeror.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A contract agreed to under duress is

A

voidable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

All of the following will terminate an offer EXCEPT

  • revocation of the offer before acceptance
  • death of the offeror before acceptance
  • a counteroffer by the offeree
  • an offer from a third party
A

-an offer from a third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

An offeree has the right to …

A

reject an offer

17
Q

Which of the following BEST describes a contract that is voidable?

  • The contract has no legal effect
  • The contract is oral
  • The contract may be valid
  • The contract has not been signed
A

-The contract may be valid

18
Q

A broker took a listing and later discovered that the client was previously declared legally incompetent. The listing is now

A

of now value to the broker because it is now void.

19
Q

To assign a contract for the sale of real estate means to

A

transfer one’s rights under the contract

20
Q

A lender agrees to release the first borrower from all financial obligations and let the second buyer be responsible for the repayment of the debt. This is an example of

A

-A novation

21
Q

If a buyer defaulted some time ago on a written contract to purchase a seller’s real estate, the seller can still sue for damages if he is not prohibited from doing so by the

A

-statue of limitations

22
Q

A person approaches an owner and says, “I’d like to buy your house.” The owner says, “Sure” and they agree upon a price. What kind of contract is this?

A

-Unenforceable

23
Q

What is the outcome in Pennsylvania when a real estate licensee provides legal advice to the sellers or the buyers?

A

-criminal offense

24
Q

In Pennsylvania, an electronic signature is

A

-valid

25
Q

A buyer and a seller sign a contract to purchase, the seller backs out and the buyer sues for specific performance. What is the buyer seeking in this lawsuit?

A

-Transfer of the property

26
Q

If a real estate sales contract states that time is of the essence and the stipulated date of transfer comes and goes without a closing, the contract is

A

-breached

27
Q

In filling out a sales contract, someone crossed out several words and inserted others. To eliminate future controversy about whether the changes were made before or after the contract was signed, the usual procedure is to

A

have both parties initial or sign and date the margin near the change.

28
Q

Under the statue of frauds, contracts for the sale of real estate must be

A

in writing to be enforceable

29
Q

A man has an executory contract to buy property but would rather let his friend by it instead. If the contract allows, the friend can take over the man’s obligation by the process known as

A

-assignment

30
Q

Which of the following is NOT one of the essentials of a valid contract?

  • Legality of Object
  • Earnest Money
  • Consideration
  • Offer and acceptance
A

–Earnest Money

31
Q

A son forged his mother’s signature on the listing agreement because he didn’t want to bother her with the details. What is the status of the listing agreement?

A

-Void

32
Q

While suffering from a mental illness that caused delusions, hallucinations, and loss of memory, a person signed a contract to purchase real estate. Under these conditions, what is the status of the contract?

A

-Voidable

33
Q

The buyer asked the real estate licensee to prepare an agreement to purchase because the buyer wanted to make an offer. With these instructions, the licensee

A

is permitted to fill in the blanks of a pre-printed form

34
Q

Pennsylvania’s Plain Language Act requires that many consumer contracts …

A

-use short words and be written in the active voice

35
Q

Which of the following are legal in Pennsylvania?

  • Contracts written in Spanish, if the participants are native Spanish speakers
  • Only contracts written in English on paper
  • Electronic signatures, records, and writing
  • Electronic documents, but not signatures
A

-Electronic signatures, records, and writing

36
Q

A void contract is …

A

not legally enforceable

37
Q

The legal proceeding or legal action brought by either the buyer or the seller under a purchase contract to enforce the terms of the contract is known as

A

-special performance

38
Q

A written real estate contract is assumed to be the complete agreement of the parties because of the …

A

Parole evidence rule: under a parole evidence rule, a written contract takes precedence over oral agreements or promises.

39
Q

What is the statue of limitations in Pennsylvania to file for breach of contract?

A

Four Years

Real Estate (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions