National Lesson 7

Question 1

A violation of any of the terms or conditions of a contract; default; non-performance is known as _______.

Answer 1

breach of contract

Question 2

A(n) ______ is something of value, exchanged for something of value.

Answer 2

consideration

Question 3

A(n) ___________ is one which places an obligation on one party without a corresponding obligation on the part of the other

Answer 3

unilateral contract

Question 4

Taking any advantage of another by playing on his weakness or distress is called ____________.

Answer 4

undue influence

Question 5

A(n) __________ is a contract in which nothing is said or written but it is obvious that a contract was in affect because of the actions of the parties.

Answer 5

implied contract

Question 6

A listing wherein the owner lists the property for sale with one broker but reserves the right to list the property concurrently with as many other brokers as he or she may desire is called a(n) ___________.

Answer 6

open listing

Question 7

A listing with a special provision that allows the broker to purchase the listed property is called a(n) ___________.

Answer 7

option listing

Question 8

___________ allows rent to be increased or decreased periodically based on changes in the government cost-of-living index.

Answer 8

index lease

Question 9

___________ allows the tenant to pay a fixed rent, while the landlord pays all taxes, insurance, etc.

Answer 9

gross lease

Question 10

Forms used to terminate a transaction and is used in some states by a broker to get a written release from both the buyer and the seller to authorize the refund of earnest money is called __________.

Answer 10

cancellation agreement