Lesson 7 Flashcards
To be enforceable in court, a sales contract must have:
competent parties
Which is TRUE about valid contracts?
The consideration can be the mutual promises to perform.
While suffering from a mental illness that caused delusions, hallucinations, and loss of memory, a person signed a contract to purchase real estate. Which statement regarding the contract to purchase is TRUE:
The contract is voidable
The law that bars legal claims after certain periods of time is known as the:
statute of limitations
Which of the following is the MOST essential element for an enforceable real estate purchase contract?
Being in writing
Under the statute of frauds, all contracts for the sale of real estate must be:
in writing to be enforceable
Certain elements must be present in a real estates sales contract involving a single-family residence if the contract is to be valid. Although the following elements are recommended, which on is NOT as absolute necessity?
Type of deed
A minor’s contract is:
Enforceable until court determines it is void
An oral contract to lease real estate for a four year period is:
Unenforceable
A person approaches an owner and says, “I’d like to buy your house.” The owner says, “Sure,” and they agree on a price. What kind of contract is this?
Unenforceable
Which of the following constitutes a rejection of an offer?
Counteroffer
An illiterate person is considered
one who cannot read or write
An optionee can do which one of the following?
Legally enforce the excercise of the option if the optionor decides against performing.
Which is not necessary for the sale of personal property?
Written Contract.
The doctrine of laches:
Prevents unfair relief that is detrimental to a party being sued.
Offer is made by offeror. Seller responds with counteroffer. What is legal status of original offer?
Original offeror has no obligaton
A purchase contract for the sale of land was valid when it was entered into, but the seller refused to convey the land as agreed. Although there have been no changes in the law, the executory contract is now unenforceable. The reason why the buyer is not entitled to a legal or equitable remedy could be:
The statute of limitations
A purchase contract provision stating that the buyer shall forfeit the deposit if the buyer fails to complete the purchase is known as:
Liquidated damages
A right to buy a property at a yet-undetermined price, where the seller is free not to sell, is a:
Right of first refusal
Acceptance of a sales contract is accomplished when the:
Offeree signs the sales contract
Meeting of the minds refers to:
Offer and acceptance
An executed P&S gives the buyer what type of title?
Equitable
If the parties to a contract are of legal age and of sound mind, they are said to have:
Legal capacity
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During a telephone conversation, a prospective buyer offers to purchase real property for $100,000 and the owner accepts the offer. This agreement is considered to be what type of contract?
Unenforceable
All of the following are essential for a valid real estate sales contract EXCEPT:
provision for broker’s commission
What terminates a contract for deed?
Delivery of a deed to the vendee
