Nat 3

Question 1

A legally enforceable agreement to do or not to do a specific thing

Answer 1

Contract

Question 2

Requires certain contracts to be in writing to be enforceable and to be signed by the parties or their authorized agents

Answer 2

Statute of frauds

Question 3

Legally capable individuals who can enter into a binding contract

Answer 3

Competent parties

Question 4

Money or other valuables such as contributed labor or love and affection

Answer 4

Valid consideration

Question 5

All parties must agree to all terms

Answer 5

Offer and acceptance

Question 6

All of the terms have been stated between the parties, either verbally or in writing

Answer 6

Expressed contract

Question 7

A contract created from the actions or conduct of the parties

Answer 7

Implied contract

Question 8

All terms have been performed by the parties

Answer 8

Executed contract

Question 9

All the terms have not been fully performed

Answer 9

Executory contract

Question 10

A promise is made by one party in return for the promise of another

Answer 10

Bilateral contract

Question 11

One party makes a promise to induce other party into action

Answer 11

Unilateral contract

Question 12

The right to buy or lease a property with in a specified period for a specified price and term

Answer 12

Option

Question 13

Allows the holder to match any offer the owner may receive to buy or lease the property

Answer 13

Right of first refusal

Question 14

Contract contains all the essential elements

Answer 14

Valid contract

Question 15

No contract at all, not enforceable by law

Answer 15

Void or invalid contract

Question 16

Appears to be valid but because of a defect could be over turned by one of the parties

Answer 16

Voidable contract

Question 17

A contract that is worded loosely or vaguely

Answer 17

Illusory contract

Question 18

A written employment contract which appoints the broker as the sellers agent for the purpose of finding a buyer

Answer 18

Listing agreement

Question 19

The listing broker will be paid a commission only if they find a buyer for the property

Answer 19

Open listing

Question 20

The listing broker will be paid a commission if they or any other broker finds a buyer. No commission if the seller finds a buyer

Answer 20

Exclusive agency listing

Question 21

The listing broker will be paid a commission if they or another broker or the seller finds a buyer

Answer 21

Exclusive right to sell listing

Question 22

A listing on a property on which the broker holds an option

Answer 22

Option listing

Question 23

A written employment contract in which the buyer hires a broker to assist the buyer in locating and acquiring property

Answer 23

Buyer brokerage agreement

Question 24

Prohibits anti-competitive practices such as

• Different brokerage firms agreeing to fixed commission
• Leading to believe that commissions are non-negotiable
• Geographical non-compete areas
• Boycotting other comp listings

Answer 24

Sherman anti-trust act

Question 25

Competent parties
Valid consideration
Offer and acceptance 
Lawful purpose 
Be written
Proper property descriptions

Answer 25

Elements of a contract