Contract Law Flashcards
An investor purchases a five family house his tenants whole current leases at the time of the closing. The new owner now has the right to collect the rents. This is an example of
Accord and satisfaction
Specific performance
Novation
Assignment
Assignment
A contract whereby the buyer will occupy the property upon paying the purchase price in installments and the seller agrees to transfer title to the buyer upon receiving full payment from the buyer is called all of the following except
Land contract
Contract for deed
Option
Contractor title
Option
All of the following statements are true except
The statute of frauds requires all real estate contracts to be written and contain the requirements for a valid contract
Parole evidence rule permits oral exclamation supporting but not contradicting A written contract
Oral testimony alone is sufficient to enforce a real estate sales contract
A purpose of the statute of frauds’s is to state which contracts must be written to be enforceable
Oral testimony alone is sufficient to enforce a real estate sales contract
Which statement is true regarding an option contract
The option or pays the right to purchase this by a specific date but does not promise to purchas
Because two parties agree the option is a bilateral contract
And option is an express unilateral contract
The option he promises to allow the options are the sole right to purchase the property by a specific date
An option is an express unilateral contract
Which of the following is not a remedy for breach of contract
Specific performance
Compensatory damages
Liquidated damages
Novation
Novation
A buyer and seller enter into a purchase agreement. Three weeks prior to the closing the seller finds out that the buyer is a psychologist. The seller decides to back out of the transaction because he doesn’t believe that psychology is an honorable honorable profession. The buyer wants the transaction to be completed and filed a lawsuit for which of the following
Rescission
Actual damages
Specific performance
Discrimination
Specific performance
All of the following are true of land contract except a land contract
Must be in writing to be enforceable
Provides equitable title to the buyer
Cannot be used on land purchases
Is binding on the errors and estates of the parties
Cannot be used on land purchases
An example of liquidated damages is
Penalty for party taking fraudelent advantage over another
Penalty for extremely bad behavior by a party
Forfeiture of earnest money
Money actually lost
Forfeiture of earnest money
A listing contract creates a
Contract for sale
Transfer of title
License
Fiduciary agency relationship
Fiduciary agency relationship
Which of the following is not an example of means of legal discharge of a contract by operation of law
Death of one of the parties
Destruction of the property
Assignment of contract
Bankruptcy of either party
Assignment of contract
A purchase agreement can be completed or terminated all of the following situations except when
The property is destroyed by fire or flood
All terms and conditions of the contract or Met
Deadlines have expired and conditions were not Met
Most terms and conditions of the contract are met
Most terms and conditions of the contract are met
The substitution of a new contract to replace a prior contract is a form of contract termination called
Novation
Assignment
Full performance
Meeting of the minds
Novation
All of the following our circumstances that terminate the listing contract except
Renewal of the contract expiration
Description of the property
Death or in capability of the seller
Mutual agreement with the seller in the broker
Renewal of the contract expiration
Scott will list his farm for sale what time Billings a local brokers specializes in farming land transactions. Scott will retain the right to sell the property himself but assures him if he is the only broker Scott wants to work with. Time advises got to sign a contract for a
Non-exclusive agency
Open listing
Exclusive agency
Exclusive right to sell
Exclusive agency
Good consideration
Natural duty and affection
