real estate principles: chapter 6

What is always true about a counter offer?

It terminates the previous offer

A written contract between two parties is:

express and bilateral

When an existing contract is replaced with an entirely new contract, it is called:

novation

Which of the following is used to change the original terms of the purchase agreement?

counter offer form

A remedy for breach can be:

a unilateral rescission, an action for damages, an acceptance of breach.

A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:

"subject to" provision or contingency clause.

Which of the following forms are part of CAR's® "Purchase Agreement Package"?

- Disclosure Regarding Real Estate Agency Relationship (AD) - Wire Fraud and Electronic Funds Transfer Advisory (WFA) - Buyer's Inspection Advisory (BIA)

Which of the following is FALSE concerning purchase agreement contracts?

Promissory notes and post-dated checks are never acceptable as consideration.

Consideration can best be described as:

anything of value

If one of the parties doesn't go through with a contract (nonperformance), it is called a(n):

breach

The current award for liquidated damages on a purchase agreement form is a maximum of:

3% of the home purchase price

Which of the following is FALSE concerning options?

They require that the optionee (purchaser) always go through with the purchase

Which of the following is NOT considered a basic element of a contract?

enforcement

An agreement that is made either verbally or in writing is known as a(n):

express contract

If a contract is said to be "executory," it:

has not yet been completely performed

Any contract that can't be performed within one year from the date of signing:

must be in writing

Which of the following is NOT a remedy for breach of contract?

substitute performance

A signed written contract takes precedence over oral agreements or prior written agreements based on:

the parol evidence rule

an assignment

transfers a person's right in a contract.

Which of the following is a classification of a contract?

valid, unenforceable, voidable