Unit 11

Question 1

Valid Contract

Answer 1

Voluntary agreement based on consent of the agreement
-May be revoked at time of acceptance
-Must be of legal age and able to understand nature or consequences of their actions
-Contact must be supported by consideration
-Have legal act as its objective

Question 2

Express Contract

Question 3

Implied Contract

Question 4

Bilateral conract

Answer 4

Having obligations on both sides

Question 5

Unilateral contract

Answer 5

A promise by one side that can be accepted by performance of the other side

Question 6

Executed

Answer 6

All parties have fulfilled their promises

Question 7

Executory

Answer 7

One or both parties still have an act to perform

Question 8

Voidable

Answer 8

If it may be rescinded or disaffirmed by one or both parties. Including contract with a minor

Question 9

Void

Answer 9

If one of the essential elements is missing. Includes mistake, misrepresentation, fraud, undue influence, duress, no mutual consent

Question 10

Contract may be DISCHARGED (completed) by

Answer 10

-Performance
-Partial Performance
-Substantial Performance
-Impossibility of Performance
-Novation
-Breach
-Mutual Agreement
-Operation of Law
-Rescission
-Cancellation

Question 11

Client Representation Agreement

Question 12

Sales Contracts Agreement

Answer 12

Accompanies by an earnest money deposit, which may be held in a broker’s escrow or trust account until an escrow is arranged to complete a property purchase or the funds are returned to the would-be-buyer if there is no agreement

Question 13

Options Agreement

Question 14

Escrow Agreements

Question 15

Property Management Agreements

Question 16

Lease Agreements

Question 17

Owner Financing Agreements

Question 18

What’s included in a sales contract?

Answer 18

Identifies the parties and subject property, EMD, financing method, identify closing agent, closing, possession, fixtures, personal property, inspections, seller disclosures, and contingencies (ex. attorney to review, secure financing, inspections)

Question 19

Amendments

Question 20

Addendums

Question 21

Option

Answer 21

Allows the optionor (owner) to give the optionee the right to purchase at a later dat eat the price fixed in the option agreement

Question 22

Owner financing

Question 23

Land contract also known as

Answer 23

Contract for deed, bond for title, installment contract, land sales contract, or article of agreement for warranty deed