Contracts Review

Question 1

A Contract that specifies that something NOT be done is called a contract for:

Answer 1

Forbearance

Question 2

A Verbal Contract is called :

Answer 2

Parol Contract; A verbal contract is is one type of an expressed contract A verbal or oral contract is called a PAROL CONTRACT

Question 3

A CONTRACT in which the parties SPECIFICALLY STATE THEIR INTENT TO ENTER INTO AN AGREEMENT IS CALLED AN

Answer 3

ESPRESSED CONTRACT.

Question 4

A CONTRACT WHICH IS EITHER WRITTEN OR ORAL IS AN

Answer 4

EXPRESSED CONTRACT

Question 5

A contract which is created by the ACTS of the parties is called an

Answer 5

Implied contract : like getting in a taxi implies I’ll pay and it implies he will take me where I want to go.

Question 6

A contract neither written or oral is an

Answer 6

Implied contract

Question 7

A contract that meets all the requirements of the law is called a

Answer 7

VALID Contract

Question 8

an Executory Contract

Answer 8

is one of which all requirements have NOT been completed.

Question 9

An unenforceable contract is often a contract that is

Answer 9

ORAL

Question 10

Voidable Contracts

Answer 10

Can be enforced b one party

Question 11

A contract that will stand up in court is

Answer 11

Valid and enforceable

Question 12

A contract that is binding on only one party is

Answer 12

Voidable; The other party may choose to either reject or accept.

Question 13

Where one party is entitled to rescind the contract by reason of the other party’s misrepresentation,

Answer 13

A contract that can be rescinded is VOIDABLE.

Question 14

A CONTRACT THAT IS VOIDABLE but not yet Rescinded is

Answer 14

Valid

Question 15

A contract in which both parties promise to give up something is a

Answer 15

BILATERAL CONTRACT

Question 16

A REAL ESTATE CONTRACT

Answer 16

is a Bilateral Contract

Question 17

A Real Estate Contract is also a

Answer 17

Expressed Contract

Question 18

Unilateral Contract

Answer 18

only one person is giving up something

Question 19

A sales bonus offered to a salees persons by a company is a

Answer 19

Expressed contract

Question 20

A sales bonus offered to salespersons by a company is a unilateral contract WHY

Answer 20

only the company makes a promise to give up something, therefore it is a UNILATERAL CONTRACT

Question 21

A CONTRACT where all requirements have been fulfilled and the parties have done what they agreed to do is called an

Answer 21

EXECUTED CONTRACT

Question 22

EXECUTORY CONTRACT

Answer 22

A CONTRACT WHERE ALL REQUIREMENTS HAVE NOT BEEN COMPLETED.

Question 23

In a home sale, the seller promises to give his home to the buyer and the buyer promises to give him money. This is known as

Answer 23

Consideration

Question 24

Once an offer is made, It can be withdrawn

Answer 24

until the acceptance is communicated. Only the person who made the offer can withdraw it.

Question 25

The minor is not bound to the contract , so

Answer 25

contracts with minors are voidable

Question 26

A contract made by a person who was intoxicated is typically

Answer 26

VOIDABLE!

Question 27

IF A PERSON signs a contract and is later judged to have been incompetent at the time of signing,

Answer 27

The contract is VOIDABLE! IF PERSON IS INCOMPETENT WHEN SIGNING THEN ITS VOID.

Question 28

Someone who is appointed to act on behalf of someone else in a specific act is called an

Answer 28

attorney-in-fact

Question 29

Novation VATION

Answer 29

Novation is the process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract. This means that the original party transfer both the benefits and burdens under the contract.

Question 30

If a novation of a contract is made, the assignor has

Answer 30

NO responsibility for performance.

Question 31

With Assignment, the assignor is still ultimately liable for performance if the assignee faiols to perform.

Answer 31

However, with NOVATION, the withdrawing party (assignor) is released from liability

Question 32

In an Option contract , the option period

Answer 32

must be specified

Question 33

The sales price for property in an option contract must be agreed or when the

Answer 33

Option contract is signed.

Question 34

Exercising the option occurs when the the Optionee...

Answer 34

chooses to buy the property

Question 35

An Option can be exercised by

Answer 35

The optionee only

Question 36

An option Contract requires payment of consideration by

Answer 36

the Optionee

Question 37

When an OPTION CONTRACT IS exercised, a binding sales contract

Answer 37

is automatically in effect.

Question 38

In the case of an option contract for real property, a broker normally earns a commission when?

Answer 38

When the option is exercised.

Question 39

Options Contracts are assignable

Answer 39

Unless prohibited in the contract.

Question 40

During the option period, the interest in the property is held by the optioner is

Answer 40

LEGAL TITLE.

Question 41

WHEN AN OPTION IS EXERCISED BUT THE SALE HAS NOT CLOSED, THE INTEREST HELD BY THE OPTIONEE

Answer 41

IS EQUITABLE TITLE (The right to obtain full ownership of a property

Question 42

Option Contract is Unilateral because

Answer 42

Its just one person is obligated. the offeror

Question 43

A right to buy property which has NO fixed price and NO time limit is called a

Answer 43

Right of first refusal

Question 44

When a seller breaches a sales contract, the buyer may do all of the following : Sue for Monetary Damages Rescind the contract sue for specific performance BUT

Answer 44

He can not sue for possession of property

Question 45

A suit in court to force a party to a contract to complete the requirements of the contract is called a suit for

Answer 45

Specific Performance

Question 46

The seller or the buyer is more likely to win a suit for specific performance.

Answer 46

The Buyer

Question 47

"Time is of the Essense"

Answer 47

Phrase meaning a party is in breach of contract if he fails to perform by the specified deadline

Question 48

A written agreement where in a seller agrees to sell and buyer agrees to buy real estate on the terms and conditions set forth there in is called

Answer 48

Contract of Sale

Question 49

Earnest Money

Answer 49

Is not legally necessary

Question 50

If a contract offer is not accepted with in the specified time period , it

Answer 50

TERMINATES

Question 51

ANY change in a contract offer by the offeree results in _____

Answer 51

termination of the original offer.

Question 52

A contract of sale accepted by the seller with the stated understanding that th4e seller has already accepted a prior offer is

Answer 52

A back-up Offer.

Question 53

Binder is

Answer 53

A short purchase contract used in some states to secure a real estate transaction until a more formal contract can be prepared by an attorney

Question 54

A contract of sale under which the seller retains legal title while the buyer takes possession is called a

Answer 54

INSTALLMENT CONTRACT

Question 55

LAND CONTRACT, CONTRACT FOR DEED , CONTRACT FOR TITLE AND BOND FOR TITLE ARE ALL NAMES FOR

Answer 55

INSTALLMENT CONTRACTS

Question 56

AFTER AN INSTALLMENT CONTRACT IS CLOSED...THE LEGAL TITLE IS HELD BY THE

Answer 56

SELLER; THE BUYER HOLD THE EQUITABLE TITLE

Question 57

THE BUYER OF THE PROPERTY OF AND INSTALLMENT CONTRACT DOES WHAT?

Answer 57

PAYS THE PROPERTY TAXES, AND THE INTEREST ON LOAN PAYMENTS IS DEDUCTED FOR TAX PURPOSES.

Question 58

"equitable title"

Answer 58

refers to a PERSON'S RIGHT to obtain full ownership of a property or property interest.