Deck 18: Overview of Real Estate Litigation

Question 1

List the items that must be included in an action for breach of a brokerage contract.List the items that must be included in an action for breach of a brokerage contract.

Answer 1

(1) Jurisdictional facts;
(2)licensing of broker under state statute;
(3)allegations setting forth ownership of the real property;
(4)if the defendant is a corporation, allegations of agency relationship between defendant and defendant's agent;
(5)existence of contract for brokerage services;
(6)allegations establishing the amount of the agreed-upon commission;
(7)allegations setting forth the conditions of performance by plaintiff;
(8)allegations of breach of contract by defendant;
(9)allegations establishing plaintiff 's full performance;
(10)allegations of damages sustained by plaintiff as a result of defendant's breach;
(11)if attorney's fees are recoverable, that plaintiff had to employ legal counsel to bring this action;
(12)prayer for relief; and
(13)signature of attorney.

Question 2

Under what circumstances will a liquidated damages provision be upheld by a court?

Answer 2

A liquidated damages provision will be upheld by a court only if the actual damages incurred by a party are difficult to calculate and thus a reasonable agreed-upon sum has been arrived at in the contract. If a contract for sale and purchase gives the nonbreaching party the option of recovering liquidated damages for bringing suit for monetary damages, the liquidated damages provision will not be upheld.

Question 3

For a liquidated damages provision to be upheld:

A) the damages suffered must not be grossly disproportionate to the amount of damages one would expect as a result of a breach of contract
B) the amount of the damages suffered must be certain
C) both a and b

Answer 3

A

Question 4

The ___ is the remedy for breach of contract in which the calculation of damages is the difference between the contract price and the fair market value of the property.

Question 5

Under contract law, attorney's fees may not be recovered by the prevailing party from the losing party unless the contract so provides.

Question 6

Lawsuits for monetary damages are lawsuits for       remedies.

Question 7

List the items that must be included in an action for fraudulent inducement.

Question 8

Punitive damages generally are recoverable in a breach of contract action.

Question 9

Remedies administered according to fairness, such as injunctions and actions for specific performance, are known as ___ remedies.

Question 10

Damages rewarded to serve as an example are called            damages.

Question 11

In a lawsuit for fraudulent inducement, proper venue is:

A) the county where the real property is located
B) the county in which the agreement was made
C) both a and b

Question 12

List the items that must be included in an action for breach of implied warranty.

Question 13

When a lawsuit is brought for monetary damages, a notice of lis pendens should be filed.

Question 14

An implied warranty:

A) survives after the closing on the property
B) is available to both the original purchaser and subsequent purchasers
C) both a and b

Question 15

___ places limits on the time period in which suit may be brought on various matters.

Question 16

If a jury trial is desired, this must be specifically requested.

Question 17

What remedies are available to a buyer or seller in an action for breach of a contract for sale and purchase?

Question 18

As a defense to an action for fraudulent inducement, the defendant may raise the defense that:

A) the misrepresentation was not intentional
B) the misrepresentation did not go to a material fact
C) both a and b

Question 19

A seller is responsible for representations made by the broker.

Question 20

In a breach of contract action, proper venue is:

A) the county in which the plaintiff resides
B) the county in which the contract was executed
C) both a and b