UNIT 6 - Contract Law

Question 1

What are the 3 sources of law in Canada?

A) Statute Law, Case Law, Common Law
B)) Statute Law, Confidentially Law, Common Law
C) Common Law, Clause Law, Canadian Law
D) Development Law, Case Law, Common Law

Answer 1

A) Statute Law, Case Law, Common Law

Question 2

Which of the following terms best describes the statement “The legislation or regulations that are enacted within a jurisdiction”?

Choose only ONE best answer.

A) Declarations
B) Regulations
C) Prohibitions
D) Statutes

Answer 2

D) Statutes

The statutes are the legislation or regulations that are enacted within a jurisdiction. Statutes are typically enacted at a municipal, provincial or federal level. For example, the Real Estate Act (Alberta) and the Personal Information Protection Act (Alberta) are provincial Statute s, while the National Housing Act (Canada) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) are federal statutes

Question 3

Which type of law “relates to the decisions where the court has interpreted legislation when applying it to a specific case”?

A) Common Law
B) Civil Law
C) Case Law
D) Statue Law

Answer 3

C) Case Law

Question 4

Statutes are typically enacted at which of the following levels?

Choose only ONE best answer.

A) Municipal, provincial and federal level
B) Township, municipal and provincial
C) Township, provincial and federal
D) City, township, municipal

Answer 4

A) Municipal, provincial and federal level

Question 5

Which type of law is “a system of historical customs and accumulated court decisions that that create the judicial precedent”?

Choose only ONE best answer.

A) Common Law
B) Civil Law
C) Case Law
D) Statue Law

Answer 5

A) Common Law

Common law is a system of historical customs and accumulated court decisions that has evolved through the English legal system to become a body of law. Common law is, in essence, the ‘ law of the land’. Common law relates to case law, as it is the compilation of individual court decisions that create the judicial precedent. In common law, precedent decisions from similar case are reviewed against the facts and precedent decisions are followed or adapted

Question 6

In Canadian history, 2 doctrines of law relating to land ownership have arisen: the original Doctrine of Tenure, and the subsequent Doctrine of Estates.

True or False

Answer 6

True

Question 7

Which of the following are the doctrines of law relating to land ownership in Canada?

Choose only ONE best answer.

A) Fee simple, Leasehold and Life interest
B) Doctrine of Tenure and Doctrine of Estates
C) Doctrine of Property and Doctrine of Discovery
D) Doctrine of Estates and Doctrine of Property

Answer 7

B) Doctrine of Tenure and Doctrine of Estates

Question 8

Which of the following are true about Fee Simple ownership?

1. Fee Simple is the most common type of real estate ownership
2. It may also be referred to as a freehold estate
3. A fee simple estate owner is considered to be the absolute owner of the land
4. It is subject to the interests of the Crown

Answer 8

All of the above

Fee Simple ownership of land comes with a Bundle of Rights. These rights of ownership include possession, use, enjoyment, and sale of the land

Question 9

Which of the following are the Bundle of Rights that come with Fee Simple ownership of land?

Choose only ONE best answer.

A) The right to possess, control, enjoy and dispose
B) The right to possess, sell, give and destruct
C) The right to use, lease and subdivide the land
D) The right to sell, lease and develop the land

Answer 9

A) The right to possess, control, enjoy and dispose

Question 10

In which type of estate does the tenant have an interest in the land for the duration of his or her lifetime?

Choose only ONE best answer.

A) Leasehold estate
B) Fee Simple estate
C) Life estate
D) Life Lease estate

Answer 10

C) Life estate

Question 11

Which of the following statements is true for Dower Act?

1. Dower Act protects the rights of the untitled spouse in a matrimonial home when there’s a sole owner on the Certificate of Title
2. The Dower Act prevents the titled spouse from disposing of the land without the consent of the untitled spouse
3. Upon the death of the titled spouse, the non-titled spouse acquires the life interest in the matrimonial home
4. Dower Act applies when both the spouses are on the title or the co-habiting in the same house

Answer 11

Statements 1, 2 and 3

Question 12

The Dower Act prevents the titled spouse from disposing of the land without the consent of the untitled spouse. Disposition of the land includes which of the following?

Choose only ONE best answer.

A) Selling the property
B) Leasing the property
C) Placing a mortgage on the property
D) All of the above

Answer 12

D) All of the above

Question 13

Parker is a real estate professional with Mid Town Realty. He meets with Karen and Jason Howes who want to sell their apartment. The apartment seemed big when Jason purchased it before they met but after their marriage and with a new member coming soon, it has started to feel a bit tight. Therefore, they have decided to buy a bigger place to accommodate their growing family. Which of the following statements apply in this scenario?

Choose only ONE best answer.

A) Dower Act does not apply as Jason had purchased the apartment before marriage
B) Karen will need to sign a Dower Consent as she is the untitled spouse
C) Karen will need to sign a Dower Consent as they are a common law couple
D) Karen will need to sign a Dower Release as it’s a matrimonial house

Answer 13

B) Karen will need to sign a Dower Consent as she is the untitled spouse

Question 14

Mark and Melissa are a newly married couple. They decide to move into Melissa’s house after the wedding. A few months later, they decide to renovate the house so it suits their new lifestyle better. Melissa decides to apply for a line of credit on the home to pay for home renovations. Which of the following statements apply to Mark and Melissa?

Choose only ONE best answer.

A) Melissa can go to the bank and get a line of credit if she has enough equity in the house
B) Mark will have to sign a Dower Consent in order for Melissa to get a line of credit against the house
C) Mark will have to register a Dower Release on the property title in order for Melissa to get a line of credit against the house
D) Mark will have to be on the mortgage for them to get a line of credit against the house

Answer 14

B) Mark will have to sign a Dower Consent in order for Melissa to get a line of credit against the house

Question 15

Jennifer is a real estate professional with Dream House Realty. She is meeting with Tom and Reena who want to list their house. In addition to reviewing the title of the property, which of the following questions should she ask them to confirm if Dower rights apply?

1. Is the owner of the property the only name registered on the title?
2. Is the owner of the property legally married?
3. Has either spouse lived in the property since the time of the marriage?
4. How long have they been together?

Answer 15

Statements 1, 2 and 3

Question 16

According to the Statute of Frauds, which one of the following types of contracts have to be in writing and signed by all parties?

Contracts involving the sale of or transfer of land
Contracts to answer for the debt or duty of another
Contracts that by agreement can not be completed within 1 year
Contracts that will take 2 years or more to complete

Answer 16

Contracts involving the sale of or transfer of land
Contracts to answer for the debt or duty of another
Contracts that by agreement can not be completed within 1 year

Question 17

What is the following statements is true for The Statute of Frauds?

Choose only ONE best answer.

A) The Statute of Frauds requires that certain contracts be in writing and signed by all of the parties to the contract

B) The Statute of Frauds requires that all legal contracts have to be in writing and be signed by all of the parties to the contract

C) The Statute of Frauds requires that only the parties to the contract can take legal action for the breach of contract

D) The Statute of Frauds requires that contracts related to sale, purchase or lease of land have to be in writing and signed by all of the parties to the contract

Answer 17

A) The Statute of Frauds requires that certain contracts be in writing and signed by all of the parties to the contract

Question 18

Which of the following best describes the statement “A legally enforceable agreement in which the parties accept their obligations either verbally or in writing”?

Choose only ONE best answer.

A) Implied Contract
B) Bilateral Contract
C) Quasi Contract
D) Express Contract

Answer 18

D) Express Contract

Methods to Create Contracts

• Express Contract :An express contract is a leg ally enforceable agreement in which the parties accept their obligations either verbally or in writing.
• Implied Contract: An implied contract is a legally enforceable agreement that arises from the actions or intentions (i.e. non-verb al conduct) of the parties involved which suggests that they are acting under an agreement

Question 19

Which of the following best describes the statement “A legally enforceable agreement that arises from the actions or intentions of the parties involved”?

A) Implied Contract
B) Bilateral Contract
C) Quasi Contract
D) Express Contract

Answer 19

A) Implied Contract - non verbal conduct

Question 20

Which of the following best describe the statement “A legally enforceable agreement in which the parties to the contract are bound by their exchange of mutual promises”?

Choose only ONE best answer.

A) Quasi Contract

B) Bilateral Contract

C) Express Contract

D) Unilateral Contract

Answer 20

B) Bilateral Contract

think BI (2 or more) mutual promises

Question 21

Ramit is a real estate professional with Aurora Realty. He is approached by Janet to help her purchase a detached property. After meeting with her and understanding her needs and preferences for the property, Ramit has her sign a buyer brokerage agreement. He then takes her around to show the properties she’s interested in viewing. What type of contract has Ramit created with Janet?

Choose only ONE best answer.

A) Implied Contract
B) Adhesion Contract
C) Quasi Contract
D) Express Contract

Answer 21

D) Express Contract

•Express Contract : An express contract is a legally enforceable agreement in which the parties accept their obligations either verbally or in writing.

Question 22

Which of the following best describes the statement “A legally enforceable agreement in which only one party makes an obligation to perform an act or promise without receiving in return any express promise of performance for the other parties to the contract”?

A) Quasi Contract

B) Bilateral Contract

C) Express Contract

D) Unilateral Contract

Answer 22

D) Unilateral Contract

(UNI) think ONE

Question 23

Ron Smith, is a new real estate professional with Pier1 Realty. Mona, a young professional with Wealth Financial Services, approaches Ron as she is interested in purchasing a trendy apartment downtown. Ron is very excited about getting his first lead. He immediately puts together a list of properties based on her preferences and takes her to show these properties. As he worked as a condominium manager previously, he advises her on what to look out for. What type of contract has Ron created with Mona?

A) Implied Contract
B) Adhesion Contract
C) Quasi Contract
D) Express Contract

Answer 23

A) Implied Contract

“trendy apartment downtown” = implied intentions

Question 24

Which of the following best describes the statement “A legally enforceable agreement where one or more obligations by the parties has yet to be completed or performed”?

Choose only ONE best answer.

A) Executed Contract
B) Executory Contract
C) Quasi Contract
D) Express Contract

Answer 24

B) Executory Contract

Question 25

Which of the following best describe the statement “A legally enforceable agreement in which all the obligations that were required to be performed by the parties have been fulfilled”?

A) Executed Contract
B) Executory Contract
C) Quasi Contract
D) Express Contract

Answer 25

A) Executed Contract

Question 26

Meena is a real estate professional with Oceanview Brokerage. She is approached by Jack and Marie Jones to sell their property. She has them sign a seller brokerage agreement and lists their property for sale. With her excellent marketing skills, the house sells in one month. What type of contract would this be considered?

A) Executed Contract
B) Executory Contract
C) Quasi Contract
D) Express Contract

Answer 26

A) Executed Contract

Question 27

Brenda is a real estate professional with Creative Real Estate Brokerage. She is helping her client, Jessica, buy a property. They find a nice starter home with a good-sized yard with plenty of room for her pup to run around. Brenda writes an offer on the property which is accepted after some negotiation. The offer is subject to inspection and financing. What type of contract would this be considered?

A) Executed Contract
B) Executory Contract
C) Quasi Contract
D) Express Contract

Answer 27

B) Executory Contract

Question 28

Which of the following are essential elements that must be present in a contract in order to make it valid?

Choose only ONE best answer.

A) Capacity, legal object, intent, consideration, mutual agreement and free will
B) Legal object, intent, consideration and free will
C) Mutual agreement, capacity and free will
D) Capacity, legal object, intent and consideration

Answer 28

A) Capacity, legal object, intent, consideration, mutual agreement and free will

Question 29

Which of the following fall under “Capacity of the Parties” as it relates to a contract?

A) Intoxication/Substance Impairment:
B) Incompetence
C) Age
D) Language

Answer 29

All of the above

Question 30

Monica is a real estate professional with Excellence Realty. She is helping her buyer clients, Joe and Marie Hernandez, buy their first home in Canada. Joe and Marie moved to Canada about a year ago in order to provide a better future to their kids. They are very excited about buying their first home. When Monica goes to explain the contract, she realizes that even though their spoken English is not bad, they don’t have full grasp of the language to understand the contract. What options does Monica have?

A) Speak slowly and loudly to make sure to confirm that they understand each point of the contract
B)Continue explaining and confirm at each point of the contract that they understand
C) Bring in an interpreter or a family member who can translate and help them understand the contract
D) All of the above

Answer 30

C) Bring in an interpreter or a family member who can translate and help them understand the contract

Question 31

Which of the following best describe the statement “A mistake that occurs when all parties hold the same erroneous belief regarding a fact of the contract”?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 31

A) Common mistake

Question 32

Bill is a real estate professional with Prime Real Estate Brokerage. He is helping his clients, Joe and Marissa Johnson buy a property. Joe tells Bill that he would love to get his son, Kyle, into fishing but does not have time to take him on full day trips out of town to good fishing spots. Bill shows them a property located in a community that has private lake that is stocked with fish for the locals. Bill and the Johnsons both believe that the property has access to the lake. Once the Johnsons move into their new home, they realize there’s no lake access. What type of mistake has been made?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 32

A) Common mistake

Question 33

Melinda, a real estate professional, is helping her out-of-town clients buy a property in Edmonton. She shows them a property with a big field behind the house. Her clients are really excited at the prospect of being able to play with their kids and exercise the dog in the field. Melinda knows that a developer has recently purchased to property to build an apartment building on the field but she doesn’t say anything. What type of mistake would this be considered?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 33

D) Unilateral mistake

Question 34

Rohit is a real estate professional with Property Plus Realty. He is helping his buyer clients purchase their first home. They have not been pre-approved for a mortgage yet so he refers them to Sean who is a mortgage broker. Sean tells them that they’re approved for a 5-year mortgage at 3% interest rate. They decide not to proceed with the property as the interest rate they were getting was too high. When asked by Rohit, they tell him that they were quoted a 5% interest rate for a 3-year mortgage. Rohit knows that the current interest rates are not that high and notifies Sean. Sean checks his notes and realizes that they’re approved for a 3% interest rate on a 3-year mortgage. What type of mistake has been made?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 34

B) Mutual mistake

Question 35

Which of the following best describes the statement “A mistake that occurs when each party makes a mistake about a key fact, but the mistakes are different”?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 35

B) Mutual mistake

Question 36

Which of the following best describes the statement “A mistake that occurs when one party holds an erroneous belief and the other party, knowing it to be erroneous, does not correct that understanding”?

Choose only ONE best answer.

A) Common mistake
B) Mutual mistake
C) Bilateral mistake
D) Unilateral mistake

Answer 36

D) Unilateral mistake

Question 37

Which of the following is an example of undue influence?

1) A real estate professional sells his property to first time home buyers who are represented by another brokerage
2) A real estate professional buys property from an unrepresented seller
3) A lawyer sells his property to a client who is unrepresented
4) A real estate professional sells his property to an investor who owns several properties in the neighbourhood

Answer 37

2) A real estate professional buys property from an unrepresented seller
3) A lawyer sells his property to a client who is unrepresented

UNREPRESENTED

Question 38

A contract where all of the essential elements of a contract are present is called _______?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 38

B) A valid contract

Question 39

A contract where one or more of the essential elements of a contract are not present is called _______?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 39

A) A void contract

Question 40

A contract where one party challenges the contract regarding a lack of one or more of the essential elements is called _______?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 40

C) A voidable contract

Question 41

A contract that either contravene the law of that jurisdiction or is made for illegal purposes is called _______?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 41

D) An illegal contract

Question 42

Patrick is a real estate professional with Prime Brokerage. He is helping his clients, Dave and Jen Chan, who are recent immigrants, buy a condo downtown. A month after the deal closes, Patrick gets a letter from Chans lawyer that the Chans are suing Patrick and the brokerage as they didn’t understand the contract they signed because of language issues. What type of a contract would this be?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 42

C) A voidable contract

Question 43

James Bell is a new real estate professional with New Age Realty. He is very excited to be working on his first deal with his buyer clients, Brad and Amanda. He helps them find a house they love. Prior to the completion, the lawyer discovers that the address and legal description is of the neighboring property. What would this contract be considered?

Choose only ONE best answer.

A) A void contract
B) A valid contract
C) A voidable contract
D) An illegal contract

Answer 43

A) A void contract

Question 44

Which of the following is correct about contract conditions?

1) Conditions are impediments to a contract
2) Conditions can be included by either party to protect their interest
3) In Alberta, conditions subsequent are used for real estate purchase contracts
4) All conditions, whether precedent or subsequent, have a specific expiry date and time

Answer 44

Statements 1, 2 & 4

Question 45

What are the conditions that the party would need to waive, or remove the conditions before the specified timeline expires in order for the contract to proceed called?

Choose only ONE best answer.

A) Conditions subsequent
B) Conditions precedent
C) Seller conditions
D) Buyer conditions

Answer 45

B) Conditions precedent

Question 46

What are the conditions that are presumed to be met by the deadline if no notice is provided to the contrary called?

Choose only ONE best answer.

A) Conditions subsequent
B) Conditions precedent
C) Seller conditions
D) Buyer conditions

Answer 46

A) Conditions subsequent

Question 47

Bianca, a real estate professional with Superior Realty, is helping her clients purchase a house in quiet neighborhood. On her advice, they make the purchase conditional on financing and home inspection. The conditions are to be removed in 2 weeks. During home inspection, the home inspector finds termite infestation. As a result, they decide not to waive the conditions and the deal collapses. What type of conditions did the purchase contract include?

Choose only ONE best answer.

A) Conditions subsequent
B) Conditions precedent
C) Seller conditions
D) Buyer conditions

Answer 47

B) Conditions precedent

Question 48

Which of the following statements is true about contract terms?

1) Terms are the essential details of the contract and represent the points of agreement
2) Terms can also represent a shared understanding between the parties
3) Terms may also specify work to be done by one party prior to the completion of the contract
4) Even if the terms of the contract have not been met, the contract can still proceed

Answer 48

All of the above

Question 49

Which of the following terms is best described by the statement “only the original parties to a particular contract can enforce or be bound by that contract”?

Choose only ONE best answer.

A) Statute of Frauds
B) Privity of contract
C) Statute of repose
D) Statute of limitations

Answer 49

B) Privity of contract

Question 50

Which of the following are the common methods to discharge a contract?

Choose only ONE best answer.

A) Performance, mutual agreement, frustration, operation of law or breach
B) Monetary damages, restitution, performance, mutual agreement
C) Specific performance, reformation, frustration, mutual agreement
D) Restitution, rescission, mutual agreement, specific performance

Answer 50

A) Performance, mutual agreement, frustration, operation of law or breach

Question 51

Bill, a real estate professional with Omega Realty, lists an apartment building for sale. A month later, faulty electrical wiring in one of the apartments causes a fire and the entire building burns down. The owners of the building decide to rebuild with the insurance payout. This is an example of a contract discharged through _______________?

Choose only ONE best answer.

A) Specific performance
B) Operation of law
C) Frustration
D) Breach

Answer 51

C) Frustration

Question 52

Melissa is a real estate professional with Queens Realty. She is very excited that her career has taken off. She has several listings and is working with a few buyers. She is fully booked with showings all week. On Monday, Melissa learns that the brokerage has failed to renew its license on time. What should Melissa do?

Choose only ONE best answer.

A) Switch to a new brokerage and move all her clients with her
B) Continue the do her showings while the brokerage renews its license
C) Market her properties while she waits for her brokerage to renew its license
D) Stop all real estate activity immediately

Answer 52

D) Stop all real estate activity immediately

Question 53

What is it called when one party fails to fulfill an obligation under a contract?

Choose only ONE best answer.

A) Frustration
B) Operation of law
C) Breach
D) Specific performance

Answer 53

C) Breach

Question 54

Michael, a real estate professional with Top Tier Realty, has recently listed his first luxury home. Two weeks later, he learns that the seller has declared bankruptcy. The broker tells Michael that he can no longer sell the house. In this example, the contract is discharged through which method?

A) Frustration
B) Operation of law
C) Breach
D) Specific performance

Answer 54

B) Operation of law

Question 55

Katarina, a real estate professional with Premiere Realty, has recently listed a property for sale. The sellers are hoarders and Katarina has trouble convincing them to put some of their belongings in the storage. After talking with the client, she decides to list the property as-is. However, every time she tries to schedule a showing they decline it, making it very difficult for her to do her job. What is this an example of?

A) Frustration
B) Operation of law
C) Breach
D) Specific performance

Answer 55

C) Breach

Whenever one party breached or fails to fulfill an obligation under contract the other party may have the right to seek legal recourse though the courts

1. one party announcing that they will not perform the contract
2. making it impossible to preform the contract
3. failure to perform the contract

Question 56

A breach can arise in which of the following different ways?

Choose only ONE best answer.

A) By one party announcing that he or she will not perform the contract although the time for performance has not yet arrived

B) By one of the parties making it impossible to perform the contract

C) By failure to perform the contract at the time of performance

D) All of the above

Answer 56

D) All of the above

Question 57

What are the remedies for breach of trust?

Choose only ONE best answer.

A) Monetary damages, quantum meruit, specific performance, injunction
B) Performance, mutual agreement, frustration, operation of law, breach
C) Monetary damages, frustration, injunction, operation of law
D) Breach, quantum meruit, injunction, specific performance

Answer 57

A) Monetary damages, quantum meruit, specific performance, injunction

Question 58

Joseph and Jenna Kutcher recently purchased a new home. A month after moving in, their son started having breathing problems and feeling sick. After investigating, they found out there’s mold in the house. It cost the Kutchers $65,000 to remediate the mold issue and make the place safe to live. They take the seller to court and the judge awards them $65,000 that seller has to pay for not disclosing material latent defects. What remedy for breach of trust is demonstrate in this scenario?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 58

C) Monetary Damages

Question 59

“If the contract has been discharged by breach, and the injured party has done part but not all of what was promised under the terms of the contract, the injured party is entitled to the reasonable value of services performed”. This describes which remedy for breach of trust?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 59

A) Quantum Meriut

Question 60

“Under certain circumstances and where damages are inadequate, the party guilty of the breach can be compelled by the court to carry out his or her promise”. This statement describes which remedy for breach of trust?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 60

B) Specific Performance

Question 61

Blair is a real estate professional with Key Property Management, representing the landlord of Crown Plaza in Red Deer. One of the tenants in the plaza are storing materials in their unit that could cause environmental contamination of the property which goes against the lease terms. The landlord took the tenants to court and the judge ordered the tenants to stop storing the materials. This describes which remedy for breach of trust?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 61

D) Injunction

Question 62

Trish and Mason Kennedy listed their house for sale. The market had been slow so they were very happy to receive a full price offer within a week of their house on the market. They accepted the offer and the house was to close in 2 months. A week before the closing, they received an offer on the house which was $100,000 more than what they had agreed to sell their house for. They let their real estate professional know that they have decided to keep the house. The buyers take the Kennedys to court and the judge orders them to vacate the house and transfer it to the buyers as per the original contract.

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 62

B) Specific Performance

under certain circumstances and where damages are inadequate, the party guilty of the breach can be compelled by the court to carry out his or her promise.

Question 63

Clara, a real estate professional, is helping her clients, Preeti and Khalid Khan, list their home for sale. The Khans decide to paint their home before listing. They hire a painter but half way through the job there’s a dispute and the painter walks away from the job. Due to the breach of contract by the painter, the Khans refuse to pay him. The case goes to the court and the judge orders Khans to pay for the amount of work that was done but not the entire amount agreed upon at the beginning of the project. What remedy for breach of trust is demonstrate in this scenario?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 63

A) Quantum Meriut

Has done part but not all of what was promised under the terms of the contract

Question 64

“Where the contractual promise was to refrain from doing something, the court may restrain the offending party from doing that act”. This statement describes which remedy for breach of trust?

Choose only ONE best answer.

A) Quantum Meriut
B) Specific Performance
C) Monetary Damages
D) Injunction

Answer 64

D) Injunction

Question 65

Which of the following type of contracts would a real estate professional sign?

Brokerage employment contract
Written service agreement
Purchase contract
Lease agreement

Answer 65

Brokerage employment contract

Written service agreement

Question 66

Which of the following are written service agreements used by real estate professional?

Lease agreement
Offer to purchase
Buyer brokerage agreement
Seller brokerage agreement

Answer 66

Buyer brokerage agreement

Seller brokerage agreement

Question 67

Which of the following statements is true about the brokerage written service agreements?

Choose only ONE best answer.

A) A service agreement is a contract between the brokerage and the client
B) A service agreement is a contract between the brokerage and the real estate professional
C) A service agreement is a contract between the real estate professional and the client
D) A service agreement is a contract between the buyer and the seller

Answer 67

A) A service agreement is a contract between the brokerage and the client

Question 68

Who are parties that sign the offer to purchase?

Choose ALL the correct answers

1) The real estate professional
2) The buyer
3) The broker
4) The seller

Answer 68

2) The buyer

4) The seller

Question 69

What are the 5 P’s that must be included in areal estate purchase contract?

Choose only ONE best answer.

A) Property, price, penalty, parties, possession
B) Property, parties, price, payment, possession
C) Property, price, people, promotion, place
D) Product, price, people, place, possession

Answer 69

B) Property, parties, price, payment, possession

1. Property - an accurate description of the property
2. Parties - names of the seller and buyers
3. Price - Agreed upon price between buyer and seller
4. Payment - manor or payment breakdown
5. Possession date

Question 70

A written lease of_____ or more may be registered on title of the property.

Choose only ONE best answer.

A) 2 years
B) 5 years
C) 10 years
D) 3 years

Answer 70

D) 3 years

Question 71

Which of the following statements is true for Contracts Under Seal?

1) Contracts under seal are valid and bind the parties to the contract
2) No legal consideration is required for contracts under seal
3) Contracts under seal may be signed by one party
4) Parties must be informed that they are signing a contract under seal

Answer 71

All of the above are truuuuu baaa-beeeiiii

Question 72

Which of the following are examples of Contracts under seal?

1) The transfer of a deceased person’s real property to the beneficiaries in accordance with his or her Will
2) An individual enters a game of chance where real estate is the prize
3) A Power of Attorney is used to enter into a real estate transaction
4) A Trust Agreement used by a trustee to dispose of a property for the beneficiaries

Answer 72

1) The transfer of a deceased person’s real property to the beneficiaries in accordance with his or her Will
2) An individual enters a game of chance where real estate is the prize
3) A Power of Attorney is used to enter into a real estate transaction

Question 73

In Alberta, the residential leases are governed by which legislation?

Choose only ONE best answer.

A) The Residential Tenancies Act
B) The Commercial Tenancies Act
C) Common Law
D) The Law of Property Act

Answer 73

A) The Residential Tenancies Act

Question 74

In Alberta, the commercial leases are governed by which legislation?

A) The Residential Tenancies Act
B) The Commercial Tenancies Act
C) Common Law
D) The Law of Property Act

Answer 74

C) Common Law

Question 75

Which of the following are supplementary forms used in real estate contracts?

Appendices
Schedules
Addendum
Amendment

Answer 75

All of the above

Question 76

Which of the following are the types of appendices that may be included a part of a real estate transaction from the seller’s perspective?

1) Land lease details for a mobile home
2) Condominium documents to be provided by the seller
3) Septic tank maintenance records for an acreage
4) Property inspection condition

Answer 76

1) Land lease details for a mobile home
2) Condominium documents to be provided by the seller
3) Septic tank maintenance records for an acreage

An appendix is a supplementary document that is critical to the agreement.

An annexure is an attachment that can be changed, which is not critical to the agreement.

A schedule is a list or inventory that is separate from the agreement.

Question 77

Which of the following makes the correct method used to modify, supplement or add elements of a contract that have already been agreed to?

Choose only ONE best answer.

A) Appendices
B) Schedules
C) Addendum
D) Amendment

Answer 77

C) Addendum

• documents attached to and made part of the original contract
• correct method used to change or add elements of a contract that have already been agreed to
• Using addendum avoids having to rewrite the original contract.

Question 78

Which of the following are the types of schedules that may be completed with a real estate purchase contract?

1) Schedule that details a buyer’s condition to have a property inspection conducted
2) Schedule that addresses Dower rights to ensure that the non-titled spouse consents to the ale of the property.
3) Schedule that states that a buyer’s existing property must be sold before he or she is obligated to purchase a new property
4) Schedule that outline the terms and requirements between a buyer and builder for the construction of a new residential property

Answer 78

1, 2, & 4

3 would be an example of an appendix

Question 79

Ron is a real estate professional helping his buyer clients purchase their new home. The home inspection of the seller’s property shows that there’s a leak in the basement that needs to be repaired. On the buyers’ request, Ron reaches out to the seller’s professional to negotiate a split of the cost of the repairs between the buyer and the seller. The sellers agree and the buyers waive the inspection condition. How would this change be included in the purchase contract?

Choose only ONE best answer.

A) Included in the appendix
B) As a schedule attached to the purchase contract
C) As an addendum attached to the purchase contract
D) Any of the above forms can be used

Answer 79

C) As an addendum attached to the purchase contract

Addendum because both parties have already agreed to the information - its now being added to the original contract.

Question 80

When the terms of a contract are accepted by both parties and the contract is executed, it is a binding document. If it is necessary to change any aspect of the contract, which type of form will be used to make this change?

Choose only ONE best answer.

A) Appendices
B) Schedules
C) Addendum
D) Amendment

Answer 80

D) Amendment

specifies a change to the original contract
consent by all parties is required.

Question 81

What is the document that enables an individual to appoint another person to act on his or her behalf with respect to his or her financial and legal affairs including debts called?

Choose only ONE best answer.

A) A Will
B) A Power of Attorney
C) Articles of Incorporation
D) A Trust Agreement

Answer 81

B) A Power of Attorney

Question 82

What is the Power of Attorney that allows a person to make decisions about the financial and legal affairs of the donor but not about the personal affairs of the donor such as consenting to health care or deciding where the donor should reside called?

Choose only ONE best answer.

A) A General Power of Attorney
B) A Special Power of Attorney
C) An Enduring Power of Attorney
D) An Immediate Power of Attorney

Question 83

What is the Power of Attorney that specifically makes reference to the ability to deal with land called?

Choose only ONE best answer.

A) A General Power of Attorney
B) A Special Power of Attorney
C) An Enduring Power of Attorney
D) An Immediate Power of Attorney

Answer 83

B) A Special Power of Attorney

Question 84

What is the Power of Attorney that appoints an individual to make financial and legal decisions on behalf of the donor when the donor becomes mentally incapacitated?

Choose only ONE best answer.

A) A General Power of Attorney
B) A Special Power of Attorney
C) An Enduring Power of Attorney
D) An Immediate Power of Attorney

Answer 84

C) An Enduring Power of Attorney

Question 85

Kareem is a real estate professional with Elite Realty. He is helping his client, Josh, purchase a property. The conditions need to be waived for the property. Josh tells Kaleem that he had to fly to Poland yesterday as his mother is sick and that he has given a Power of Attorney to his brother-in-law to remove the conditions on his behalf. What type of Power of Attorney would be needed in this scenario?

Choose only ONE best answer.

A) A General Power of Attorney
B) A Special Power of Attorney
C) An Enduring Power of Attorney
D) An Immediate Power of Attorney

Answer 85

B) A Special Power of Attorney

When a donor is out of the country for an extended period of time
refers to land

Question 86

What is a court appointed individual for a represented adult who has the power to make non-financial personal decisions for the represented adult, such as decisions about health care, living arrangements, diet and dress, personal associations, education and training, social activities, employment and non-estate legal concerns called?

Choose only ONE best answer.

A) Trustee
B) Beneficiary
C) Guardian
D) Executor

Answer 86

C) Guardian

Question 87

What is the person who has been appointed by way of a legal agreement to hold assets such as cash, in vestment s or real property for the benefit of one or more persons called?

A) Trustee
B) Beneficiary
C) Guardian
D) Executor

Answer 87

A) Trustee

Question 88

What is a person named in a Will, appointed to administer the distribution of the estate of a deceased individual called?

A) Trustee
B) Beneficiary
C) Guardian
D) Executor

Answer 88

D) Executor

Question 89

Which of the following statements is correct about Trusts?

1) A trustee is person who has been appointed by way of a legal agreement to hold assets such as cash, investments or real property for the benefit of one or more persons
2) A trustee can be an individual or a corporate entity
3) A trust agreement sets out the terms of the trust, including the powers and duties of the trustee
4) A trust agreement can be modified by the trustee at any time

Answer 89

1) A trustee is person who has been appointed by way of a legal agreement to hold assets such as cash, investments or real property for the benefit of one or more persons
2) A trustee can be an individual or a corporate entity
3) A trust agreement sets out the terms of the trust, including the powers and duties of the trustee

4 is not true

Question 90

Monica is a real estate professional with Tree Top Realty. She is approached by Joe from Westpoint Capital Corporation to sell a client’s property. What steps should Monica follow in this scenario?

Choose only ONE best answer.

A) Check the Trust agreement that sets out the terms of the trust
B) Pull the Certificate of Title for the property to ensure the Trustee is registered on the title
C) Keep copies of the all the documents in the brokerage file
D) All of the above

Answer 90

D) All of the above

Question 91

What is the type of legal sales transaction whereby the original buyer of a property sells, and thereby transfers, his or her interest and obligation s under the original contract to a new buyer prior to the transaction being completed called?

Choose only ONE best answer.

A) Sale
B) Trust
C) Will
D) Assignment

Answer 91

D) Assignment

Question 92

What steps must real estate professionals follow when working with executors?

1) Make reasonable efforts to ensure the person is deceased
2) Check the terms of the Will and act in best interest of the deceased
3) Check the Certificate of Title for Beneficiaries
4) Allow enough time for approvals

Answer 92

1, 2 & 4

Question 93

Brian is a real estate professional with Excel Realty. He is approached by John from Plato Corporation to sell one of their warehouses. What steps must Brian follow when working with John?

1) Check John’s identification
2) Check the articles of Incorporation to ensure John has the authority to act on behalf of the corporation
3) Check the Certificate of Title to confirm property ownership
4) Ensure the corporation is authorized to buy that type of property

Answer 93

All of the above

Question 94

What is the type of sale of real property that is conducted under the supervision of the Court of Queen’s Bench called?

Choose only ONE best answer.

A) Assignment
B) Judicial Sale
C) Pre-Sale
D) Estate Sale

Answer 94

B) Judicial Sale

Question 95

What needs to happen for the acceptance of an offer to occur?

Choose only ONE best answer.

A) The last party must sign the purchase contract
B) The acceptance must be communicated to the other party
C) The last party must verbally communicate the acceptance of the purchase contract
D) All of the above

Answer 95

B) The acceptance must be communicated to the other party

Question 96

Which legislation ensures that electronic record and transactions have the same validity and enforceability as traditional paper-based transaction?

Choose only ONE best answer.

A) Electronic Transactions Act
B) The Real Estate Act
C) Electronic Documents Act
D) The Law of Property Act

Answer 96

A) Electronic Transactions Act