Section 2: Formation of a Contract Flashcards
A transaction involving a natural person, personal household, or for familial purposes describes a
a. consumer transaction.
b. business transaction.
c. transaction between entities.
d. transaction between companies.
a. consumer transaction.
A consumer transaction involves a natural person, household, or is used for familial purposes.
An electronic signature has what aspect?
a. signature could be lost if there is a change in vendor
b. accepted internationally
c. uniform standards
d. secure coding
a. signature could be lost if there is a change in vendor
If there is a change in vendor, an electronic signature could be lost.
Which of the following is NOT a valid method of communication for a buyer to accept an offer?
a. oral communication
b. personal delivery
c. mail, FedEx, email
d. carrier pigeon
d. carrier pigeon
Which of the following regarding mutual mistakes is FALSE?
a. can be a mistake of material fact
b. applies to mistakes of law
c. may allow the buyer to rescind the contract
d. may allow the buyer to be refunded all monies
b. applies to mistakes of law
The North Carolina Offer To Purchase and Contract requires _______ to assign rights under the agreement.
a. permission and consent from the buyer
b. permission and consent from the seller
c. permission and consent from both parties
d. neither permission nor consent
c. permission and consent from both parties
An offer is terminated in all of the following ways EXCEPT
a. counteroffer.
b. rejection by the offeree.
c. revocation, death, or insanity of the offeror.
d. the offeree learns the gender or race of the offeror and rejects the offer.
d. d. the offeree learns the gender or race of the offeror and rejects the offer.
A valid contract is formed when both parties
a. orally agree to terms.
b. sign.
c. sign and initial any changes in the agreement.
d. sign, initial any changes in the agreement, and communicate to each other that the documents are complete.
d. sign, initial any changes in the agreement, and communicate to each other that the documents are complete.
An electronic record or signature is sent when
it is properly addressed.
a. it is properly addressed in a form that can be processed.
b. it is properly addressed, under the recipient’s control, and outside of the sender’s control.
c. it is properly addressed, in a format that can be processed, under
d. the recipient’s control, and outside of the sender’s control.
d. it is properly addressed, in a format that can be processed, under the recipient’s control, and outside of the sender’s control.
To be considered sent, the electronic form must be properly addressed, in a format that can be processed, under the recipient’s control, and outside of the sender’s control.
When an electronic record enters a processing system from which the recipient can receive the form in a format that can be processed, the electronic record is considered
a. sent.
b. received.
c. compiled.
d. executed.
b. received.
Unfair trade practice applies to
a. real estate professionals and sellers who regularly trade in the business.
b. an owner who does not regularly act in the business.
c. an unlicensed son selling a house inherited from his father.
d. everyone buying or selling real estate.
a. real estate professionals and sellers who regularly trade in the business.
The mailbox rule states that the Real Estate Commission measures delivery from the time when communication is
a. sent.
b. received.
c. received unless delayed upon transmission.
d. received unless returned to sender or lost in the mail.
a. sent.
Which of the following is NOT considered fraud?
a. willful misrepresentation of material facts
b. willful omission of material facts
c. negligent misrepresentation of material facts
d. willful omission of immaterial facts
d. willful omission of immaterial facts
A mistake of fact is a mutual mistake involving
a. something that is not a material fact and is the result of fraud or negligence.
b. a material fact and is the result of fraud or negligence.
c. a material fact that is not the result of fraud or negligence.
d. something that is not a material fact and is not the result of fraud or negligence.
c. a material fact that is not the result of fraud or negligence.
When can a buyer withdraw an offer?
a. anytime; the absolute right of withdraw applies up until money changes hands
b. anytime; the absolute right of withdraw applies always
c. anytime; prior to acceptance of the offer, the absolute right of
d. withdraw applies up until the offer is accepted
never; once a buyer has made an offer, he is obliged to honor it
C. anytime; prior to acceptance of the offer, the absolute right of withdraw applies up until the offer is accepted
Which of the following statements regarding the Electronic Signature in Global and National Commerce Act (E-Sign Act) and Uniform Electronic Transactions Act (UETA) is TRUE?
a. The E-Sign Act applies to North Carolina only.
b. UETA applies to all states and foreign commerce.
c.The E-Sign Act utilizes electronic signatures.
d. The E-Sign Act utilizes digital signature.
d. The E-Sign Act utilizes digital signature.
An offer is terminated in all of the following ways EXCEPT
a. the offeree learns the gender or race of the offeror and rejects the offer.
b. revocation, death, or insanity of the offeror.
c.rejection by the offeree.
d. counteroffer.
a. a. the offeree learns the gender or race of the offeror and rejects the offer.
A mistake of fact is a mutual mistake involving
a. something that is not a material fact and is the result of fraud or negligence.
b. a material fact and is the result of fraud or negligence
c. a material fact that is not the result of fraud or negligence.
d. something that is not a material fact and is not the result of fraud or negligence.
c. a material fact that is not the result of fraud or negligence.
By definition, a mistake of fact is a mutual mistake, involves a material fact, and is not the result of fraud or negligence.
Form 340-T includes all of the following responses EXCEPT
a. rejection of the offer without a counteroffer.
b. rejection of the offer with a counteroffer.
c. invites the offeror to try again.
d. provides suggestions for terms that the offeror is willing to consider.
b. rejection of the offer with a counteroffer.
Form 340-T is a response to a buyer’s offer that rejects the offer without a counteroffer and provides suggestions for terms that the offeror is willing to accept if the offeree will try again.
Communication of the acceptance of electronically submitted offers is all of the following EXCEPT
a. authorized by the Uniform Electronic Transactions Act (UETA).
b. not legally binding.
c. binding.
d. equivalent to communication to the party when delivered to an agent.
b. not legally binding.
Communication of the acceptance of an electronically submitted offer is legally binding.
The definition of an “electronic record” includes all of the following aspects EXCEPT
a. generated in electronic format.
b. sent and received in electronic format.
c. stored in a hard copy.
d. stored in electronic format.
c. stored in a hard copy.
When an electronic record enters a processing system from which the recipient can receive the form in a format that can be processed, the electronic record is considered
a. sent.
b. received.
c. compiled.
d. executed.
b. received
The North Carolina Offer To Purchase and Contract requires _______ to assign rights under the agreement.
a. permission and consent from the buyer
b. permission and consent from the seller
c. permission and consent from both parties
d. neither permission nor consent
c. permission and consent from both parties
An electronic record or signature is sent when
a. it is properly addressed.
b. it is properly addressed in a form that can be processed.
c. it is properly addressed, under the recipient’s control, and outside of the sender’s control.
d. it is properly addressed, in a format that can be processed, under the recipient’s control, and outside of the sender’s control.
d. the recipient’s control, and outside of the sender’s control.
To be considered sent, the electronic form must be properly addressed, in a format that can be processed, under the recipient’s control, and outside of the sender’s control.
Unfair or deceptive trade practices include all of the following EXCEPT
a. a misleading opinion or false inducement.
b. failure to disclose immaterial facts.
c. misleading advertising.
d. misrepresentation of the nature of a guarantee or warranty.
b. failure to disclose immaterial facts.
