Chp. 13 Quiz - Contracts Flashcards
Refraining from taking legal action when a promissory note payment is late is called
Forbearance
Issues that are not covered in a preprinted purchase agreement are dealt with by
Using a preprinted rider.
Issues that are not covered in the purchase and sale agreement itself are usually dealt with
using preprinted riders.
A patron at a restaurant is agreeing to a(n)
implied contract.
According to contract law, every valid contract is also what?
Enforceable or unenforceable
A verbal long-term lease may be
Valid but unenforceable.
What is used to seal a binder agreement?
Earnest money
Which legal remedy attempts to force the defaulting party to comply with the terms of the contract?
Suit for specific performance
Which contract provision makes previous promises null and void?
Merger Clause
Which legal remedy cancels the contract and returns the parties to their pre-contract condition?
Rescission
A buyer provides earnest money along with an offer to purchase for all of the following reasons EXCEPT which?
To meet purchase offer requirements
What do we call the right of a person to have the first opportunity to purchase or lease a property?
Right of first refusal
A buyer submits an offer to a seller. Two hours later, the buyer finds a better house, calls the first seller, and withdraws the offer. Which of the following is TRUE?
The original offer is legally terminated.
When is a contract terminated?
After it is performed
An installment sales contract is which type of contract?
Bilateral
