Section 11 TF Quiz

Question 1

If a buyer rejects a counteroffer, the seller can sign the original offer and go forward with the sale obligating the buyer.

Answer 1

A. True
[A] B. False

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[Section 11B, Slide 66]; Upon making the counteroffer, the original offer was terminated and cannot later be accepted should the seller’s counter not be accepted.

Question 2

The promise to perform and fulfill the contract requires either valuable consideration which can be measured in terms of money or good consideration which cannot be measured in terms of money such as love and affection.

Answer 2

[A] A. True
B. False

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[Section 11A, Slide 92]

Question 3

The definition of a contract is a binding agreement between two or more parties. It is an agreement to do a legal act for legal consideration.

Answer 3

[A] A. True
B. False

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[Section 11A, Slide 23]

Question 4

By law, minors have the legal capacity to enter into an enforceable contract.

Answer 4

A. True
[A] B. False

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[Section 11 Slide 35] By law, minors do not have the legal capacity to enter into an enforceable contract. Therefore, a minor may enter into contract, but the contract is voidable by the minor.

Question 5

Meeting of the minds is when two parties reach an agreement through mutual assent.

Answer 5

[A] A. True
B. False

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[Section 11A, Slide 79]

Question 6

The person who makes the offer is the Offeror. While the person who has the offer made to him/her is the Offeree.

Answer 6

[A] A. True
B. False

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[Section 11B, Slide 58]

Question 7

A contract can only be entered into when the terms are clearly understood and expressed between parties of the contract.

Answer 7

A. True
[A] B. False

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[Section 11B, Slides 36-38]; The terms of an expressed contracts are spelled out in detail in the contract. Implied Contracts, on the other hand, are contracts where the parties never verbally or in writing formally agreed to enter into a contract but ended up in a contract based on the implication of their actions.

Question 8

Working in the role as a real estate licensee automatically gives the broker the right to sign on behalf of a buyer or seller for a purchase and sale agreement.

Answer 8

A. True
[A] B. False

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[Section 11E, Slide 62]; Acting in the role of a Real Estate Licensee on behalf of a buyer or seller does not give the licensee the power to bind a buyer or seller to a sale by signing in their place. Only someone who is an attorney-in-fact and has power of attorney and can sign a contract for another person.

Question 9

When assigning a contract to another party, novation keeps the original party obligated to the terms of the contract should the new party fail to perform.

Answer 9

A. True
[A] B. False

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[Section 11C, Slide 47]; Novation relieves the original party from the obligation.

Question 10

Options are an agreement between a property owner and a buyer that gives the buyer the right to purchase a contract without the obligation to actually do so.

Answer 10

[A] A. True
B. False

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[Section 11B, Slide 17]