Chapter 7

Question 1

The typical real estate purchase agreement is

Answer 1

a bilateral contract. page 176

Question 2

When both parties to a contract agree to substitute a new agreement for the present one, this is known as a

Answer 2

novation. page 185

Question 3

Both parties agree to cancel a contract in the process o

Answer 3

rescission. page 185

Question 4

A contract that has yet to be performed is known as an

Answer 4

executory contract. page 175

Question 5

Performance of a contract may be excused if a party can prove which of the following?

Answer 5

Impracticability of performance. page 185

Question 6

A contract that is a promise for a promise is known as a

Answer 6

bilateral contract. page 175

Question 7

Failure to perform a contract obligation is known as a

Answer 7

breach. page 186

Question 8

Which of the following is NOT a way to terminate a contract?

Answer 8

Verification. page 187

Question 9

A contract that has no legal effect from its inception is a

Answer 9

void contract. page 176

Question 10

To be enforceable, real estate sales agreements must

Answer 10

be in writing. page 176