Contracts Flashcards
When one party has the right of rescission in a contract, it is called
Voidable
If a buyer can’t qualify for a loan, what clause in a purchase contract would benefit the buyer?
Contingency
When a purchase contract is signed by the buyer and seller, what is not required
Notarized signatures
All contracts must have
Consideration
When a contract is made between a competent party and a minor it is
Voidable by the minor
When an offer is written on another broker’s listing, the selling agent is required to
Contact the listing broker
When a purchase contract has handwritten and preprinted language
The handwritten language has priority
All contracts are required to be in writing per the
Statute of frauds
When a contract is based on fraud it is
Voidable by the party the fraud was committed against
Three unilateral contracts are
Option, first right of refusal, reward poster
A contract is not considered valid until there is an
Offer and acceptance
When a contract is for an illegal act or purpose it is
Void
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
Unenforceable
A court action to compel a buyer or seller to carry out the terms of a contract
Specific performance
When the seller is signed by someone other than the seller it would most likely be
An attorney-in-fact
A purchase contract would be terminated by
Eminent domain or condemnation
When a contract has pre-printed language, the agent should
Review and alter if necessary
Which agent has the original contract and earnest money
Selling agent
When an option to buy is exercised, the option is
Unilateral executed
When an option to buy is exercised, the new contract is
Bilateral executed
A real estate agent may modify a contract
Only if it is signed by the buyer and seller
When a real estate transaction is set to close escrow, what is not recorded?
Purchase contract
A buyer would get the earnest money deposit back if the contract contained a
Contingency clause
When a buyer defaults on a purchase contract, and the seller keeps the earnest money, this is called
Liquidated damages
W makes an offer to X, all parties sign, and then X dies you have
A valid contract
When a buyer enters a lease – purchase, the buyer is
Obligated to buy the property on a specific date
When a sales person has a buyer sign a buyer brokerage agreement it must have?
The beginning and ending date
A false statement made with the intention of inducing another party
Intentional misrepresentation
When should a sales person take an inventory of the sale
When personal property is included
If a sales contract is signed only by one spouse the status of the contract is
Unenforceable against both
When a purchase contract is signed under duress it is
Voidable
In illusory contract would be
Unenforceable
If a buyer gives earnest money and signs a contract and the decides not to complete the terms of the contract the seller may
Retain the earnest money
