Contracts

Neighbors enter into an agreement to not permit their real estate agents to sell their homes to families with children. This agreement lacks ______, so it's void. A. A lawful objective B. A mutual agreement C. A purpose D. Two parties

A. A lawful objective

Saul was unhappy after he and Janelle liquidated their business. Janelle sold some items for less than he'd initially agreed to, and he wanted the full price to be included in the profit split. He wanted to sue, but he was required to pursue other options. What contract clause kept Saul from being able to sue? A. Arbitration B. Choice of law C. Damages block D. Liquidated damages

A. Arbitration

What part of an agreement are the promises that each party makes? A. Consideration B. Flaw C. Legal competency D. Undue influence

A. Consideration

When offer and acceptance has occurred, both parties enter into ______. A. A contingency B. A mutual agreement C. Consideration D. Understanding

B. A mutual agreement

In a contract, consideration is the giving of ______. A. Notice to attorneys that they may review the terms of the agreement B. Something of value in exchange for something of value C. Something of value in exchange for something without value D. Thoughtfulness and courtesy to all parties

B. Something of value in exchange for something of value

In the eyes of the law, why do people under age 18 lack contractual ability? A. They have insufficient resources. B. They lack intelligence. C. They're immature. D. They're minors.

D. They're minors.

The Uniform Electronic Transaction Act (UETA) makes it legal and binding for contracts to be ______. A. Completed verbally B. Filed without signatures C. Signed electronically D. Written by a broker

C. Signed electronically

Which clause in a contract states that one or more parties won't be held liable if there are losses or expenses related to the contract? A. Choice of law clause B. Indemnification clause C. Severability clause D. Time of performance clause

B. Indemnification clause

A legally competent party means that an individual has the capacity, legally and ______, to enter into a contract. A. Financially B. Mentally C. Morally D. Purposefully

B. Mentally

Starla, 35, and Gwen, 32, are going into business! Gwen is buying a share of Starla's franchise. Their attorneys drew up a contract that had Gwen providing $45,000 to Starla in return for 50% ownership. Gwen and Starla happily signed the contract, Gwen paid Starla the $45,000, and Starla presented Gwen with a notarized certificate showing Gwen's 50% ownership in the company. What type of contract is this? A. Executory B. Valid C. Void D. Voidable

B. Valid

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract? A. Both parties B. The broker C. The party lacking legal capacity D. The party possessing legal capacity

C. The party lacking legal capacity

A 16-year-old signed a contract to purchase a home. Which party to the contract can void the contract? A. Nobody B. Only a judge C. The buyer D. The seller

C. The buyer