Question 1

The buyer agreed to buy the property at the seller's asking price. They shook hands on the deal. Later, the seller refused to sell. If the buyer still wants to buy, he can

Accepted Answer

If the buyer still wants to buy, he can sue for non-performance.

Question 2

All of the following are real estate contracts EXCEPT

Accepted Answer

This is not a contract.

Question 3

When a contract appears to be good and binding but, in fact, one of the parties may legally reject it, the contract is said to be

Accepted Answer

This contract would be considered voidable.

Question 4

The agency relationship of a real estate broker with his client is most often established by

Accepted Answer

The agency relationship is most often established by an express contract.

Question 5

The broker has the power to sign documents for the principal. This is probably because she holds

Accepted Answer

The broker has the power to sign documents for the principal probably because she holds a power of attorney.

Question 6

John and Jay are brothers who received title to a property from their father. When they decided to sell the property, Jay was out of town. In order to properly transfer title, the deed could be signed by

Accepted Answer

John could sign for both, with a properly recorded power of attorney from Jay.

Question 7

A contract entered into by a minor is

Accepted Answer

A contract entered into by a minor is voidable by the minor.

Question 8

An offeree who wishes to bind the offeror to the contract may do which of the following with an offer?

Accepted Answer

An offeree who wishes to bind the offeror to the contract may accept it.

Question 9

Which of the following is an essential element of a contract?

Accepted Answer

This is necessary for a valid real estate contract.

Question 10

All of the following are essential elements of a contract EXCEPT

Accepted Answer

This is not necessary for a valid real estate contract.

Question 11

The party making an offer is called the

Accepted Answer

The party making an offer is called the offeror.

Question 12

A lease is an example of a

Accepted Answer

A lease is an example of a bilateral contract.

Question 13

Which of the following are considered to be legally competent?

Accepted Answer

A corporation would be considered to be legally competent.

Question 14

When one party to a contract makes a promise without first receiving any promise of performance from the other, it is called

Accepted Answer

When one party to a contract makes a promise without first receiving any promise from the other, it is called a unilateral contract.

Question 15

A real estate contract can be declared void if

Accepted Answer

A real estate contract can be declared void if it is signed by an unmarried minor.

Question 16

A contract that results when a promise is exchanged for a promise is called

Accepted Answer

A contract that results when a promise is exchanged for a promise is called a bilateral contract.

Question 17

To be legally competent, a person must reach the age of

Accepted Answer

To be legally competent, a person must reach the age of majority.

Question 18

Assuming that no fraud is intended, what is the status of a contract signed by an illiterate person?

Accepted Answer

A contract signed by an illiterate person is valid.

Question 19

In the absence of a special provision for such an event, an offer to purchase will probably be voided

Accepted Answer

An offer to purchase will probably be voided by the death of either buyer or seller before acceptance.

Question 20

A meeting of the minds creating enforceable rights is called

Accepted Answer

A meeting of the minds creating enforceable rights is called a contract.

Quiz 6: Contract Law