Section 8 - General Control Law in CA

Question 1

A stated (written or oral) agreement between two parties to specific terms.

Answer 1

EXPRESS

Types of Contracts

Question 2

A contract that is based on the actions or behaviors of the parties, not on words.

Answer 2

IMPLIED

Types of Contracts

Question 3

A mutual contract that involves an exchange of promises or other consideration between two parties.

Answer 3

BILATERAL

Types of Contracts

Question 4

A contract in which consideration (such as a promise) is only given by one party to the other.

Answer 4

UNILATERAL

Types of Contracts

Question 5

A contract that contains all the essential elements.

Answer 5

VALID

Types of Contracts

Question 6

A contract in which one or more of the essential elements is missing.

Answer 6

INVALID

Types of Contracts

Question 7

Meets all of the terms of a contract.

Answer 7

PERFORMANCE OF A CONTRACT

Question 8

A definitive end of the parties’ commitments under an agreement usually due to a breach of contract—one in which the parties are returned to their pre-contract status.

Answer 8

RESCISSION

Question 9

To substitute a new party for one of the original parties stated in the contract.

Answer 9

ASSIGNMENT OF CONTRACT

Question 10

The request to assign a contract is most often made prior to an offer being made to purchase the property.

TRUE OR FALSE?

Answer 10

FALSE.

The request to assign a contract is most often made AT THE TIME the offer to purchase is made.

Question 11

When one party to an existing contract is substituted with a new party OR
when a new contract is substituted for an old one between the same parties.

Answer 11

NOVATION

Question 12

Which of these choices describes novation?

A) One party to a contract neglects to complete an obligation, but the other party agrees to go forward with the contract.
B) A contract is completed (executed), and the same parties later enter into a new contract with similar terms.
C) A contract’s terms are completed ahead of schedule, and the parties receive a congratulatory gift.
D) The rights and obligations of an original party to an existing contract are taken by another party, creating a new contract.

Answer 12

D.

The rights and obligations of an original party to an existing contract are taken by another party, creating a new contract.

Question 13

One party fails to meet the obligations of the contract.

Answer 13

BREACH OF CONTRACT

Question 14

Both parties agree to end the contract.

Answer 14

MUTUALLY RESCIND THE CONTRACT

Breach of Contract Remedies

Question 15

Portions of the contract have been completed, but seller does not wish to continue.

Answer 15

ACCEPT PARTIAL PERFORMANCE

Breach of Contract Remedies

Question 16

Seller can choose to rescind contract.

Answer 16

RESCIND THE CONTRACT UNILATERALLY

Breach of Contract Remedies

Question 17

if contract breached and causes additional damages/loss time to the seller that can’t be remedied.

Answer 17

SUE FOR DAMAGES

Breach of Contract Remedies

Question 18

Results when the parties don’t make good on all the promises they made.

Answer 18

SUE FOR SPECIFIC PERFORMANCE

Breach of Contract Remedies

Question 19

Earnest money deposit to the seller if the buyer refuses to complete the contract.

Answer 19

ACCEPT LIQUIDATED DAMAGES

Breach of Contract Remedies