Chapter 12 Quiz Flashcards
A voidable contract is
A. Enforceable
B. Void
C. Rescindable by one of the parties
D. All of the above
C. Rescindable by on of the parties
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
C. May withdraw the offer before acceptance
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
C. Voidable
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
C. Both the buyer and seller
An oral agreement for the sale of real property is
A. Unenforceable
B. Void
C. Enforceable
D. Voidable
A. Unenforceable
Which of the following is NOT essential to a valid contract?
A. Monetary consideration
B. Competent parties
C. Mutual assent
D. Lawful object
A. Monetary consideration
In an option, the option binds the
A. Optionee
B. Optionor
C. Broker
D. Salesperson
B. Optionor
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
C. Incompetent
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
C. Both A and B
Failure to perform or fulfill a contract is termed a
A. Defect
B. Fault
C. Breach
D. Delinquency
C. Breach
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
B. Executory
A contract based on an illegal consideration is
A. Valid
B. Void
C. Legal
D. Illegal
B. Void
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
D. Parol evidence
A purchase agreement does NOT need which of the following?
A. Signatures
B. Consideration
C. Title taken
D. Offer and acceptance
C. Title taken
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
C. Notification
