ENGRADE Chapter 8

Question 1

All of the following are essential to the formation of a contract

Answer 1

OFFER

ACCEPTANCE

CONSIDERATION

Question 2

Which of the following documents must be written under the Statute of Frauds in order to be enforceable in a court of law?

Answer 2

Offer to Purchase and Contract

Question 3

A crier of an auction is NOT required to have a real estate license

Answer 3

TRUE

Question 4

If there is a dispute between the buyer and the seller over the return or forfeiture of earnest money held by the broker, the broker

Answer 4

• Holds the money until the courts decide or the parties agree in writing
• Is allowed to turn the money over to the clerk of court after giving a 90 day notice to all parties

Question 5

Rejected offers and counter offers must be kept for

Answer 5

3 years

Question 6

A listing broker schedules an appointment to present a purchase offer to the seller. The seller has serious health problems and her son is attending to her health care. When the broker arrives he finds the seller’s son and daughter in law present. In the broker’s presence, both persistently urge the seller to accept the offer. The seller is reluctant to accept since the offer is substantially less than the list price. If the seller accepts the offer under these circumstances, she may later claim that

Answer 6

She was under undue influence from her son and daughter in law and therefore the contract is VOIDABLE

Question 7

A man has posted a $100 reward for anyone who returns his missing dog. This is an example of

Answer 7

Bilateral contract

Question 8

The seller unintentionally misrepresented that the soil of a lot was suitable for the construction of a building at the time the buyer was negotiating the purchase of the lot for the site of a new home. After entering into a contract to purchase, the buyer learned that contrary to the seller’s statement, the soil was unsuitable for construction. This is an example of a contract that is probably

Answer 8

VOIDABLE by the buyer because of the seller’s mistake

Question 9

The law requiring real estate contracts to be in writing in order to be enforceable is the

Answer 9

Statute of Frauds

Question 10

The legal remedy to enforce the terms of a contract is known as

Answer 10

SPECIFIC PERFORMANCE

Question 11

The term “rescission” is best defined as

Answer 11

CANCELLATION