Chapter 19 Review: Write the Offer and Contracts

Question 1

An express contract may be written or _____. I order lunch at a diner; there is an express contract that I will pay $6.95 for my meal when I am finished eating

Answer 1

oral

Question 2

An _____ contract is created through the actions of the parties. I borrowed my neighbor’s lawn mower, a lawn implement that I know my neighbor charges other people on the street to use. When I return his lawn mower, he expects that I will pay him.

Answer 2

implied

Question 3

If a person dies testate, he had a will; the _______ is responsible for settling the estate

Answer 3

executor

Question 4

If a person dies intestate, he did not have a will; the court appoints an _________ to settle the estate

Answer 4

administrator

Question 5

To be _________, a contract must have a legal purpose

Answer 5

enforceable

Question 6

An offer may be terminated by the following:

Answer 6

Revocation at any time before it is accepted
Counteroffer
Rejection
Time
Death of the offeror/offeree
Destruction of the property
Operation of law
Material change of circumstances

Question 7

An acceptance of an offer means that the offeree accepts _______ _____ __ ___ _____. There is not one thing that the parties do not agree on

Answer 7

every term of the offer

Question 8

An exchange of promises is the __________ in a contract for real estate

Answer 8

consideration

Question 9

The Statute of Frauds required that in order to be enforceable in court, real estate contracts must be

Answer 9

written

Question 10

The essential elements of a real estate sales contract are:

Answer 10

Competent parties
Legality of purpose
Offer
Acceptance
Consideration
Written contracts
Communication

Question 11

Both parties exchange promises in a ______ contract; a Purchase and Sale Agreement is an example

Answer 11

bilateral

Question 12

One part makes a promise and the other party forms the contract by completing the action in a _________ contract; offering a reward if someone finds your lost pet is an example. Another example is a listing agreement between a consumer and a real estate brokerage agency

Answer 12

unilateral

Question 13

An ________ contract is one that has not yet been completed; an example is the Purchase and Sale Agreement between its effective date and the closing

Answer 13

executory

Question 14

An _________ contract is one for which all parties have performed all duties; a Purchase and Sale Agreement the day after a successful closing is an example

Answer 14

executed

Question 15

A _____ contract contains all the essential elements and is enforceable in court

Answer 15

valid

Question 16

A _____ contract lacks one or more of the essential elements; for example, a contract for James to sell cocaine to Duncan is a void contact as it is not for a legal purpose

Answer 16

void

Question 17

A ________ contract offers one or both of the parties the option to rescind or disaffirm the contract; for example, one of the parties was 16 years old when she made a contract to buy a bicycle. The parties can go through with the sale if they wish. Or either party can disaffirm the sale

Answer 17

voidable

Question 18

An _______ contract may be brought to court in a lawsuit

Answer 18

enforceable

Question 19

An __________ contract is one for which neither party can sue to enforce in court. An example is an oral agreement to purchase real estate

Answer 19

unenforceable

Question 20

Most state laws allow for a licensee to ___________ on a prepared contract form; licensees need to avoid the unauthorized practice of law

Answer 20

fill in blanks

Question 21

In a real estate contract, liquidated damages are usually limited to the

Answer 21

earnest money deposit

Question 22

With an ______ contract, the seller agrees to take the property off the market for a period of time

Answer 22

option

Question 23

A Right of First Refusal is a contract to buy property that is _________________. If the owner ever puts the property on the market, the holder of the right has the first opportunity to buy the property

Answer 23

not currently for sale

Question 24

Three ways that a sales contract can be discharged by operation of law are:

Answer 24

Forfeiture
Condemnation
Bankruptcy

Question 25

When a party rescinds the contract, the parties return to the ____________ they held before entering into the contract. For example, the buyer didn’t like the results of the building inspection so, according to the terms of her contract with the seller, the buyer got her earnest money back and went on her merry way

Answer 25

same legal positions