Chapter 9 Flashcards
A seller’s counter to an unacceptable offer to purchase can be written on:
a. a new purchase agreement form.
b. a counteroffer form.
c. the original offer using the change-and-initial method.
d. All of the above.
D
The change-and-initial counteroffer technique is proper even after the original document has been signed.
a. True
b. False
B
Contingency provisions included in purchase agreements are eliminated by:
a. approval of the information identified as the subject of the provision.
b. waiver of the right to cancel by the person authorized to cancel.
c. Both a and b.
d. Neither a nor b.
C
Written contingency provisions include:
a. who has the right to cancel the purchase agreement if the event does not occur.
b. a description of the event addressed in the contingency.
c. the time period in which the event has to occur.
d. All of the above.
D
The primary user of contingency provisions in purchase agreements is the buyer or buyer’s agent.
a. True
b. False
A
A condition which a buyer needs to perform without concern for whether the seller is performing is called a:
a. condition precedent.
b. condition concurrent.
c. condition subsequent.
d. None of the above.
B
The person with the right to cancel due to the failure of a contingency to occur may only exercise their right if they have a reasonable basis for the cancellation.
a. True
b. False
A
Mutual-benefit contingencies cannot be waived except by mutual consent.
a. True
b. False
A
Checking the availability of fire insurance is an activity addressed by an event-occurrence contingency.
a. True
b. False
A
Personal-satisfaction contingencies are identical to event-occurrence contingencies.
a. True
b. False
B
