contracts and offers

Question 1

They are complete; there is nothing more that needs fulfilling.

Answer 1

Executed

Question 2

An offer terminates by any of the following, EXCEPT:

Answer 2

rejection by the offeror

Question 3

In which situation would an agency relationship automatically terminate during the term of agency?

Answer 3

The principal or the agent is declared insane by a court

Question 4

Termination of a listing would occur in all of the following, EXCEPT:

Answer 4

a suit for monetary damages

Question 5

Agency is defined as a legal relationship in which one person acts for, and under the control of another person:

Answer 5

in dealing with third parties

Question 6

Those contracts have not yet been completed because of unfinished obligations.

Answer 6

Executory

Question 7

This fee covers the cost for the lender to process an application

Answer 7

Application Fee

Question 8

Only one party is involved in making a promise concerning the contract

Answer 8

Unilateral

Question 9

A court order to carry out the terms of a real estate sales contract would be associated with the term:

Answer 9

Specific performance

Question 10

Fiduciary most closing means:

Answer 10

Trust

Question 11

A general agent usually has the authority to:

Answer 11

Conduct a series of transaction on behalf of his principal

Question 12

An agent’s authority is classified as actual, express, implied or apparent. If a seller calls a broker and asks him to sell his house, this is an example of:

Answer 12

Express authority

Question 13

At the time of entering into a binding contract, the buyer acquires:

Answer 13

equitable title

Question 14

A ‘time is of the essence’ clause is most likely to be found in which of the following:

Answer 14

An option to purchase

Question 15

You wake up and find that your garage is on fire. You call the fire department and tell the chief you will give him $400 if he puts the fire out. The fire is extinguished and the chief asks you to pay $400. You refuse to pay:

Answer 15

the contract is not binding because the chief did not give any consideration

Question 16

They meet the necessary contract law requirements and offer legal repercussions if it is not fulfilled.

Answer 16

Enforceable

Question 17

This is a type of seller financing in which buyers receive title after making payments on a property until the purchase price is paid.

Answer 17

contract for deed

Question 18

They may appear to be legal but are lacking in their ability to meet some of the legal requirements. One or more parties can rescind the agreement as long as it’s done within a certain time frame.

Answer 18

Voidable

Question 19

Brokers in a contract for deed should be paid:

Answer 19

at the time of signing

Question 20

Such contracts do not meet the criteria for contract law. This may be due to the contract containing illegal intent and therefore being unenforceable.

Answer 20

Void

Question 21

All parties are presumed to be competent (to have legal capacity) to enter into contracts. However, some parties may have limited capacity, including:

Answer 21

a married woman, regardless of age if her husband is a minor

Question 22

They are legally binding and enforceable contracts where all parties are in agreement, and all the standards of contract law have been met.

Answer 22

Valid

Question 23

This fee covers the cost for the lender to process an application

Answer 23

Application Fee

Question 24

They have the appearance of validity, but they offer no legal remedies if not fulfilled.

Answer 24

Unenforceable

Question 25

They arise due to intentions, relationship, or action of the parties involved.

Answer 25

. Implied

Question 26

For a contract to be enforceable in court it must have:

Answer 26

Bilateral

Question 27

This is the point in time when the title of the property is transferred from the seller to the buyer

Answer 27

Closing

Question 28

They allow parties to state the terms of their contract in writing or verbally

Answer 28

Expressed