Contracts

Question 1

When one party has the right of rescission in a contract, it is called

Answer 1

Voidable

Question 2

If a buyer can’t qualify for a loan, what clause in a purchase contract would benefit the buyer?

Answer 2

Contingency

Question 3

When a purchase contract is signed by the buyer and seller, what is not required

Answer 3

Notarized signatures

Question 4

All contracts must have

Answer 4

Consideration

Question 5

When a contract is made between a competent party and a minor it is

Answer 5

Voidable by the minor

Question 6

When an offer is written on another broker’s listing, the selling agent is required to

Answer 6

Contact the listing broker

Question 7

When a purchase contract has handwritten and preprinted language

Answer 7

The handwritten language has priority

Question 8

All contracts are required to be in writing per the

Answer 8

Statute of frauds

Question 9

When a contract is based on fraud it is

Answer 9

Voidable by the party the fraud was committed against

Question 10

Three unilateral contracts are

Answer 10

Option, first right of refusal, reward poster

Question 11

A contract is not considered valid until there is an

Answer 11

Offer and acceptance

Question 12

When a contract is for an illegal act or purpose it is

Answer 12

Void

Question 13

Q makes an offer to Y, the offer is signed by Y who makes a counter and fires before Q accepts, what is the contract status

Answer 13

Unenforceable

Question 14

A court action to compel a buyer or seller to carry out the terms of a contract

Answer 14

Specific performance

Question 15

When the seller is signed by someone other than the seller it would most likely be

Answer 15

An attorney-in-fact

Question 16

A purchase contract would be terminated by

Answer 16

Eminent domain or condemnation

Question 17

When a contract has pre-printed language, the agent should

Answer 17

Review and alter if necessary

Question 18

Which agent has the original contract and earnest money

Answer 18

Selling agent

Question 19

When an option to buy is exercised, the option is

Answer 19

Unilateral executed

Question 20

When an option to buy is exercised, the new contract is

Answer 20

Bilateral executed

Question 21

A real estate agent may modify a contract

Answer 21

Only if it is signed by the buyer and seller

Question 22

When a real estate transaction is set to close escrow, what is not recorded?

Answer 22

Purchase contract

Question 23

A buyer would get the earnest money deposit back if the contract contained a

Answer 23

Contingency clause

Question 24

When a buyer defaults on a purchase contract, and the seller keeps the earnest money, this is called

Answer 24

Liquidated damages

Question 25

W makes an offer to X, all parties sign, and then X dies you have

Answer 25

A valid contract

Question 26

When a buyer enters a lease – purchase, the buyer is

Answer 26

Obligated to buy the property on a specific date

Question 27

When a sales person has a buyer sign a buyer brokerage agreement it must have?

Answer 27

The beginning and ending date

Question 28

A false statement made with the intention of inducing another party

Answer 28

Intentional misrepresentation

Question 29

When should a sales person take an inventory of the sale

Answer 29

When personal property is included

Question 30

If a sales contract is signed only by one spouse the status of the contract is

Answer 30

Unenforceable against both

Question 31

When a purchase contract is signed under duress it is

Answer 31

Voidable

Question 32

In illusory contract would be

Answer 32

Unenforceable

Question 33

If a buyer gives earnest money and signs a contract and the decides not to complete the terms of the contract the seller may

Answer 33

Retain the earnest money