Section 9: Unit 1 Exam

Which of the following is a contract that exists based on an understanding or assumption, rather than on specifically defined terms?

Implied contract

Which of the following best describes a bilateral contract?

A contract that involves an exchange of consideration between two parties

All of the following are true regarding implied agreements EXCEPT which one?

An implied agreement is based on a formal agreement.

Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory.

Enforceable

To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable.

Identify the contracting parties

The statute of frauds requires any contract for real property to be ______.

In writing

Which of the following is an essential element of a valid real estate contract?

Legal purpose

In a purchase offer, is earnest money required to have a binding contract?

No, because the buyer's consideration is the promise to buy.

Which of the following requires that contracts transferring ownership of real property be in writing to be enforceable?

Statute of frauds

Consent is not present when _______.

The contract is signed under duress or undue influence

You're talking to a co-worker at lunch and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?

This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged.

Which element of a valid contract is established by getting the signatures of all parties?

Which element of a valid contract is established by getting the signatures of all parties?