Unit 6 Real Estate Contracts

Question 1

A contract whose terms have been explicitly declared either verbally or in writing is an:

Answer 1

Express contract

Question 2

A contract in which one party has the right to void the contract is a :

Answer 2

Voidable contract

Question 3

A contract created by the actions of the parties is an:

Answer 3

Implied contract

Question 4

A contract with a minor will be:

Answer 4

Voidable

Question 5

A lease agreement in which the tenants pays rent only is a :

Answer 5

Gross lease

Question 6

A lease agreement where the tenant pays rent plus operating expenses is a:

Answer 6

Net Lease

Question 7

A unilateral contract in which the buyer has the right to purchase a property from the seller if the buyer chooses to do so is an:

Answer 7

Option

Question 8

A party attempting to enforce an oral executory real estate purchase contract would be stopped by the :

Answer 8

Statute of frauds

Question 9

___________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given.

Answer 9

Mutual agreement

Question 10

True or False

Party who makes an offer to another is known as the offeror.

Answer 10

True

Question 11

An accepted offer becomes biding on the offeror upon:

Answer 11

Communication of acceptance

Question 12

Actual knowledge to enter into a contract by intentionally deceiving a party is :

Answer 12

Fraud

Question 13

Something of value given in exchange for something else of value is:

Answer 13

Consideration ( A Dime, A Dollar, a Doughnut)

Question 14

May be required as part of liquidated damages in a purchase contract and is not consideration.

Answer 14

Earnest Money

Question 15

Additonal material attached to and made part of an offer is an:

Answer 15

addendum

Question 16

To modify a written contract, both parties must sign an:

Answer 16

amendment

Question 17

The buyer has equitable title in an:

Answer 17

Executory contract

Question 18

The right of parties to a contract to sue each other to perform the terms of the contract is :

Answer 18

Specific performance

Question 19

When the seller keeps only the earnest money or other things of value of a buyer who is in default, the contract remedy is :

Answer 19

Liquidated damages

Question 20

Contracts can be either:

Answer 20

Oral or written

Question 21

Bilateral contract is:

Answer 21

Promise exchanged for a promise, both parties bound to perform.

Question 22

Unilateral contract is:

Answer 22

Promise exchanged for performance by other party, only one party bound.

Question 23

A valid contract :

Answer 23

Meets all legal requirements; has all essential elements.

Question 24

A void contract:

Answer 24

Has no legal effect; not enforceable by either party. Lacks essential elements of a valid contract.

Question 25

A voidable contract:

Answer 25

One party is not bound, but the other is( because one party is a minor, or because of fraud, duress, or misrepresentation.

Question 26

True or False

Strike through changes on an offer must be initialed ( and dated for clarity) by all parties to be enforceable.

Answer 26

True

Question 27

All parties must abide by the terms of the contract or be in:

Answer 27

Breech

Question 28

True or False

Legally, a rejection terminates the original offer.

Answer 28

True

Question 29

Puffing is:

Answer 29

the act of making a claim that anyone would understand is not literally true.

Question 30

Caveat Emptor means:

Answer 30

“Let the buyer beware.”

not common in most states due to disclosure.

Question 31

Statute of limitations:

Answer 31

Sets forth the amount of time that the non breaching party has to take legal action against the breaching party.

Question 32

Buyer is vendee and holds equitable title the seller is vendor and holds :

Answer 32

Legal title

Question 33

A contingency clause:

Answer 33

are statements that a party will not be responsible for completing the purchase under certain conditions.

Question 34

Two forms of evictions are:

Answer 34

Actual and Constructive

( actual is what a landlord will use and constructive is what a tenant may claim if the landlord is in default.

Question 35

Upon acceptance and communication of acceptance, the offer is now considered to be:

a. counteroffer
b. unilateral
c. a contract
d. valid

Answer 35

a. a contract