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AZ Real Estate > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

A voidable contract is

A. Enforceable
B. Void
C. Rescindable by one of the parties
D. All of the above

A

C. Rescindable by one of the parties

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2
Q

A purchaser informs you that the seller has five days in which to accept this offer. The purchaser during this period

A. May not demand his earnest money be returned
B. Must wait the full five days before taking any action
C. May withdraw the offer before acceptance
D. May do nothing unless the time of the listing has expired

A

C. May withdraw the offer before acceptance

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3
Q

A broker closed a transaction on a realty and then found out that the buyer was under 18 years of age. The sale was

A. Void
B. Illegal
C. Voidable
D. Enforceable

A

C. Voidable

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4
Q

Funds for a contract of sale are held in a broker’s trust account for the benefit of

A. The broker until close of escrow
B. The buyer only
C. Both the buyer and seller
D. The seller only

A

C. Both the buyer and seller

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5
Q

An oral agreement for the sale of real property is

A. Unenforceable
B. Void
C. Enforceable
D. Voidable

A

A. Unenforceable

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6
Q

Which of the following is NOT essential to a valid contract?

A. Monetary consideration
B. Competent parties
C. Mutual assent
D. Lawful object

A

A. Monetary consideration

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7
Q

In an option, the option binds the

A. Optionee
B. Optionor
C. Broker
D. Salesperson

A

B. Optionor

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8
Q

What term describes a party who is incapable of entering into a valid contact on his own part?

A. Increment
B. Inchoate
C. Incompetent
D. Investor

A

C. Incompetent

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9
Q

Earnest money serves what purpose?

A. To show the buyer is sincere in his intention to complete the transaction
B. To protect the seller’s interest in case the buyer defaults
C. Both A and B
D. Neither A nor B

A

C. Both A and B

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10
Q

Failure to perform or fulfill a contract is termed a

A. Defect
B. Fault
C. Breach
D. Delinquency

A

C. Breach

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11
Q

A contract which has been properly signed by all parties and contains conditions not yet accomplished is said to be

A. Executed
B. Executory
C. Invalid
D. Void

A

B. Executory

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12
Q

A contract based on an illegal consideration is

A. Valid
B. Void
C. Legal
D. Illegal

A

B. Void

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13
Q

Oral evidence may not be used to altar a written contract; this is called

A. Laches
B. Specific performance
C. Doctrine of relation back
D. Parol evidence

A

D. Parol evidence

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14
Q

A purchase agreement does NOT need which of the following?

A. Signatures
B. Consideration
C. Title taken
D. Offer and acceptance

A

C. Title taken

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15
Q

In order to be an enforceable contract there must be a valid offer, acceptance, and

A. Counteroffer
B. Earnest money
C. Notification
D. Good faith deposit

A

C. Notification

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16
Q

A seller accepts a buyer’s offer while the seller is out of town. What should the broker do with the earnest deposit?

A. Contact the seller and ask the seller where they would like the earnest money deposited
B. Keep the earnest deposit in a safe in the office until the seller’s return from vacation
C. Immediately deposit it into an escrow account
D. Have the buyer hold the money until the seller is back from vacation

A

C. Immediately deposit it into an escrow account

17
Q

Coercion and duress were applied against one party in a contract. The contract was

A. Void
B. Voidable
C. Valid
D. Enforceable

A

B. Voidable

18
Q

When the buyer and seller have signed the purchase contract, there is a(n)

A. Unilateral contract
B. Expressed contract
C. Implied contract
D. Contract by estoppel

A

B. Expressed contract

19
Q

A void contract is one that

A. May be rescinded
B. In not enforceable by law
C. Is paid in monthly installments
D. Is made by a sick person

A

A. May be rescinded

20
Q

Who has the primary responsibility for presenting an offer?

A. Listing broker
B. Selling broker
C. Salesperson
D. Buyer’s broker

A

B. Selling broker

AZ Real Estate (20 decks)

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