Lesson 7 Flashcards

1
Q

To be enforceable in court, a sales contract must have:

A

competent parties

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2
Q

Which is TRUE about valid contracts?

A

The consideration can be the mutual promises to perform.

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3
Q

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:

A

The contract is voidable

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4
Q

The law that bars legal claims after certain periods of time is known as the:

A

statute of limitations

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5
Q

Which of the following is the MOST essential element for an enforceable real estate purchase contract?

A

Being in writing

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6
Q

Under the statute of frauds, all contracts for the sale of real estate must be:

A

in writing to be enforceable

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7
Q

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?

A

Type of deed

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8
Q

A minor’s contract is:

A

Enforceable until court determines it is void

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9
Q

An oral contract to lease real estate for a four year period is:

A

Unenforceable

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10
Q

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?

A

Unenforceable

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11
Q

Which of the following constitutes a rejection of an offer?

A

Counteroffer

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12
Q

An illiterate person is considered

A

one who cannot read or write

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13
Q

An optionee can do which one of the following?

A

Legally enforce the excercise of the option if the optionor decides against performing.

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14
Q

Which is not necessary for the sale of personal property?

A

Written Contract.

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15
Q

The doctrine of laches:

A

Prevents unfair relief that is detrimental to a party being sued.

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16
Q

Offer is made by offeror. Seller responds with counteroffer. What is legal status of original offer?

A

Original offeror has no obligaton

17
Q

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:

A

The statute of limitations

18
Q

A purchase contract provision stating that the buyer shall forfeit the deposit if the buyer fails to complete the purchase is known as:

A

Liquidated damages

19
Q

A right to buy a property at a yet-undetermined price, where the seller is free not to sell, is a:

A

Right of first refusal

20
Q

Acceptance of a sales contract is accomplished when the:

A

Offeree signs the sales contract

21
Q

Meeting of the minds refers to:

A

Offer and acceptance

22
Q

An executed P&S gives the buyer what type of title?

A

Equitable

23
Q

If the parties to a contract are of legal age and of sound mind, they are said to have:

A

Legal capacity

24
Q

sc

A

sds

25
Q

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?

A

Unenforceable

26
Q

All of the following are essential for a valid real estate sales contract EXCEPT:

A

provision for broker’s commission

27
Q

What terminates a contract for deed?

A

Delivery of a deed to the vendee