Chapter 13 Review Flashcards
The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract’s provisions do what?
Act within a statutory period.
Which of the following is a good example of a unilateral contract?
An option to buy
During the specified period of an installment sales contract, what type of title does the buyer receive?
Equitable title
Which contract does not need to be in writing to be enforceable?
A 6-month lease
What is an important legal feature of a contract?
It represents a “meeting of the minds.”
Correcting an error in a contract document requires a legal action called
Reformation.
A contract that conveys an interest in real estate must
contain a legal description of the property.
When is a contract terminated?
After it is performed
An option to buy is what kind of contract?
Unilateral
What is used to seal a binder agreement?
Earnest money
Which legal remedy would force the buyer to give up any earnest money deposit for defaulting on a sales contract?
Forfeiture
If Broker Bill helps Customer Clyde negotiate with the property seller to repair certain issues with the property before Clyde purchases the property, what kind of contract exists between Bill and Clyde?
An implied contract
If a property’s seller changes the buyer’s original offer to purchase, the seller has
Countered the offer
Which of the following contracts must be in writing to be enforceable?
A two-year lease
A buyer provides earnest money along with an offer to purchase for all of the following reasons EXCEPT which?
To meet purchase offer requirements
