Quiz - Unit 9 Basic Contract Law

To be enforceable, contracts for the purchase and sale of real estate would need which of the following?

Mentally capable parties that understand the terms of the contract

A real estate license gives the broker the right to

fill in the blanks on pre-printed standard forms.

The injured party in a real estate transaction with the right to a suit for specific performance is typically the

buyer.

To be enforceable, a contract must be entered into by a person who is at least

18 years old.

A contract is said to be bilateral if

all parties to the contract are bound to act.

During the period of time after a valid real estate sales contract is created, but before title actually passes, the status of the contract is

executory.

A buyer is under contract but would rather let her friend buy it. Unless the contract prohibits it, the friend can take over the buyer’s obligation by the process known as

assignment.

Which of these persons would NOT have the potential to create a voidable contract?

A buyer that reads poorly.

A traveler orders a meal in a restaurant. She is obligated to pay for the meal through what kind of contract?

Implied

A seller is under contract to convey ownership of a property to a buyer. The seller changes his mind, and the buyer sues for specific performance. What is the buyer seeking in the lawsuit?

Conveyance of the property

In which of the following situations has reality of consent been reached?

Seller lied about her motivation for selling.

A buyer submits an offer to purchase property through the use of his exclusive buyer’s agent. After the buyer’s agent has delivered the offer to the listing agent at the other firm, the buyer calls and asks the buyer’s agent to cancel the offer since he has located a different property that he likes better. The buyer’s agent cannot revoke the offer if the

listing agent has sent an email to the buyer’s agent saying that the seller signed the offer.

A contract states that closing will take place on or before June 22 of this year and “time is of the essence.” If the buyer cannot close until June 26, which of the following statements is TRUE?

The buyer has breached the contract.

A builder/seller advertising a selling bonus to any selling agent is an example of

an unilateral contract.

A buyer makes an offer to a seller. The seller in this transaction would be described as the

offeree.

In a standard sales contract, several words were crossed out or inserted by the parties. To eliminate future controversy as to whether the changes were made before or after the contract was signed, the usual procedure is to

have both parties initial or sign and date in the margin near each change.

Linda and John are attending an auction to purchase 35 acres of farmland. They were the high bidders, even though their bid was very low. The type of auction Linda and John attended was an auction

without reserve.

Under the statute of frauds, all contracts for the sale of real estate must be

in writing to be enforceable.

If, upon the receipt of an offer to purchase a property subject to certain conditions, the seller makes a counteroffer, the prospective buyer is

relieved of the original offer.

A broker has found a buyer for a seller’s home. The buyer has indicated in writing a willingness to buy the property for $1,000 less than the asking price and has deposited $5,000 in earnest money with the broker. The seller is out of town for the weekend, and the broker has been unable to inform the seller of the signed document. At this point, the buyer has signed

an offer.