(Book 4) Ch. 1 - Contract Law Overview
Which of the following is an example of a termination of a contract by operation of law...? A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential The property was substantially damaged in a fire The buyer could not obtain financing to purchase the property The parties agreed to terminate the contract
A buyer has entered into a contract to purchase a commercial property but the city has now rezoned the property as residential
Additional pages of material that are added to and become part of a contract are referred to as a/an...?
Addendum
A valid and enforceable contract must include which of the following elements...? Competent parties Consideration Mutual agreement All of the above
All of the above
Which of the following is an example of a bilateral contract...? Listing contract Sales contract Independent contractor agreement All of the above
All of the above
Which of the following is an example of a termination of a contract...? Substantial performance Partial performance Impossibility of performance All of the above
All of the above
Which of the following is an example of consideration...? Money Personal services Cash All of the above
All of the above
Which of the following may be used as an alternative to novation...? Transfer the existing contract Discharge the existing contract Amend the existing contract None of the above
Amend the existing contract
A change in a legal document made by adding, altering, or omitting a certain part or term is referred to as a/an...?
Amendment
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...?
Assignment
A contract in which each party promises to do something is referred to as a...?
Bilateral contract
A valid contract must be .......... and enforceable?
Binding
A violation of any of the terms or conditions of a contract without legal reason leads to a/an...?
Breach of contract
Anything given or promised by a party to induce another to enter into a contract is referred to as...?
Consideration
The date a contract starts is known as the...?
Effective date
A contract that has been fully performed is known as a/an...?
Executed contract
An assignment can occur when a contract is...?
Executory
An executory contract is...?
In progress
Which of the following real estate contracts does not have to be in-writing...? Real estate sales contract Leases under one year Listing contracts All real estate contracts must be in writing
Leases under one year
In order to be considered a competent party, an individual must be of the age of the...?
Majority
A lease with a term of less than one year...?
May be oral or in-writing
John is about to enter into a contract with Amy, to purchase Amy's house. The real estate sales contract between John and Amy...?
Must be in-writing
If one of the parties to a contract does not voluntarily agree to the contract, this element of a valid contract is violated...?
Mutual agreement
A contract in which there is fraud by either commission or omission is voidable by the...?
Non-fraudulent party
The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties is known as...?
Novation
Which of the following is an example of a forbearance contract...? Listing contract Options contract Sales contract All of the above
Options contract
The execution of a contract by which the contracting parties are automatically discharged of their obligations under it is known as...?
Performance
A typical real estate sales contract between a buyer and seller is considered a/an...?
Performance contract
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?
Statute of frauds
A law establishing the time period within which certain lawsuits may be brought is known as the...?
Statute of limitations
An options contract is an example of a/an...?
Unilateral contract
When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a...?
Unilateral contract
A contract that is missing one or more of the elements of a valid contract is considered...?
Void
To have no force or effect is referred to as a .......... contract?
Void
That which is capable of being adjusted void, but is not unless action is taken to make it so, is referred to as a/an ............ contract?
Voidable
A contract in which one of the parties is a minor is considered a...?
Voidable contract
