Contracts Review
Ble agreed to purchase Green's property for $100,000. She gave Green a deposit of $5,000 and agreed to make a total down payment of $20,000, the balance to be paid by a mortgage loan of $80,000. What was the consideration in this agreement?
$100,000
Frau can result from: 1. giving false information 2. withholding relevant information 3. innocently giving mistaken information
1 and 2 only
An expressed contract: 1. arises from the stated intent of the parties 2. is created by the acts of the parties 3.may be a contract for forbearance
1 and 3 only
Charles made an oral offer to sell his lawn mower to Daniel for $20 if Daniel would agree not to operate it before 10 AM on weekends. Daniel accepted the offer. This agreement is: 1. an expressed contract 2. a contract for forbearance 3. a parol contract 4. invalid
1, 2, and 3
Ed failed to advise the buyers of his property of a leaky roof. The buyers discovered it before the sale was settled. Which is true? 1. There was no meeting of the minds. 2. Ed was guilty of fraud 3. The sale contract was voidable by the buyers 4. Ed was guilty of innocent misrepresentation
1, 2, and 3 only
Allan rejected Jim's offer to sell him his home and offered Jim $90000 for the property. Which of the following statement is/are correct? 1. Jim is the offeror 2.Allan is the offeror 3. Allan's offer to Jim is a counteroffer
2 and 3 only
An action brought to compel the defaulting party to perform according to the terms of a contract is known as a suit for: 1. liquidated damages 2. specific performance
2 only
In most states, in the absence of a contractual agreement to the contrary, the risk of casualty loss to a property under a contract of sale is borne by the: 1. purchaser 2. seller 3. purchaser and seller equally
2 only
The purchaser pays for the property and receives a deed at settlement when real property is sold under a: 1. contract for deed 2. contract of sale
2 only
When sure sold her home to Sally, she was unaware that the house was infested with termites. This was later discovered by Sally. Sue was guilty of: 1. fraud 2. innocent misrepresentation 3. mistake
2 only
Which of the following statements is correct if Red has an option to buy Blue's property? 1. Red may purchase the property at any time within the option period. 2. Red will forfeit the consideration if he does not exercise the option
2 only
Wilson listed his home for sale with a real estate broker for a period of 120 days. No buyer was found within this period. On the 121st day the listing would be terminated by: 1. rescission 2. expiration of time 3. mutual agreement 4. destruction
2 only
Blue gave Red an option for thirty days to purchase her property for a consideration of $500> There was no anti-assignment clause in the option. Which of the following statements is NOT correct?
Blue can force Red to buy the property
An installment contract may also be know as a : 1. land contract 2. contract for deed
Both 1 and 2
Brown agreed to sell her house to Green. They have each signed a contract of sale which calls for settlement within 30 days. During this 30-day period, the contract of sale is an: 1. executory contract 2. expressed contract
Both 1 and 2
Jim wrote a letter to Allan in which he offered to sell Allan his home for $100,000. Under the terms of this offer: 1. Jim is the offeror 2. Allan is the offeree
Both 1 and 2
With the permission of the landlord, Green's lease on a commercial building was taken over by Brown. Green was released from further liability under the lease. The original lease to Green was terminated by: 1. acts of the parties 2. novation
Both 1 and 2
Under the Uniform Vendor and Purchaser Risk Act, the risk of casualty loss to a property under a contract of sale falls upon the seller until: 1. possession is taken by the buyer 2. title passes to the buyer
Either 1 and 2
If a purchaser breaches a contract for the sale of real estate, the seller may: 1, demand forfeiture of the earnest money deposit as liquidated damages if specified in the contract 2. file z suit for monetary damages
Either 1 or 2
White sold his farm to Blue under a written contract of sale which did not contain an anti-assignment clause. Blue later assigned the contract of sale to Green. Until the sale was settled, the equitable title was held by
Green
Brown's lease on his residence gives him the first right to refusal to purchase the property if it offered for sale. Which of the following would be specified in the terms of this agreement? 1. the sale price 2. the terms of the sale
Neither 1 nor 2
contracts between adults and minors (children) are usually treated by law as
voidable by the minor
Under an option, which of the following statements is true?
The optionor must sell to the optionee
When Ed listed his home for sale, he promised to pay the broker a commission of 6 percent of the sale price if he sold the property. The broker promised to advertise the property and promote its sale through the multiple listing service. This agreement was
a bilateral contract
Which of the following need NOT be in writing in order to be an enforceable contract?
a lease for 1 year
Blue sold his house to Red under a contract of sale which called for settlement within 30 days. Blue later decided that the sale price was too low and refused to settle on the sale. At his option, Rae could sue for monetary damages, rescind the contract, and sue for specific performance
any of the answers shown
Which of the following types of contracts could NOT be assigned even though they did not contain an anti-assignment clause?
deeds
Which of the following, when given as the consideration in a contract, would NOT be a valuable consideration?
love
All of the following are true of contracts EXCEPT that they
must be based on an expressed agreement