Topic 3: Contracts-The Basics (CA portion)

The statute of frauds requires that all of the following contracts must be record in writing to the enforceable except a(n): - Agreement allowing a broker to sell real estate for compensation. - Lease agreement of one year to commence one month after date of execution. - Agreement to sell land - Agreement between two brokers to split a commission

An oral agreement to split a commission is enforceable at law. (d)

Of the following, which is most correct concerning the statute of frauds? - Misrepresentation in the making of a contract violates the statute. - It classifies most oral real estate contracts as unenforceable - It classifies an oral agreement between brokers to share a commission as unenforceable - Violations of this statue are prosecuted by the district attorney in the county where the alleged violation occurred.

The statute of frauds states that contracts must be in writing to be enforceable. Its main function is for the prevention of fraud. (b)

Mr. Miller made an express written offer to purchase a home through broker Cook. However, Milled died in a car accident before broker Cook could notify him of an unqualified, signed acceptance by the seller. Which of the following statements is most correct? - The death of Miller constituted a revocation of the offer. - The acceptance does not have to be communicated to the buyer - Notification of acceptance to the executor would bind the Miller estate - The contract would not be binding because the deed had not been delivered into escrow.

Death of the offeror constitutes a revocation of the offer. Legally, if the acceptance had been communicated to buyer before the accident, the contract would have been binding on his estate. (a)

Four months ago seller Snow accepted an offer from buyer Bell to purchase her home. the contract was in writing. Later, Snow refused to complete the transaction. Under the Statute of limitations Bell must file an action within: - 2 years - 3 years - 4 years - 5 years

Statute of limitations on any written contract is 4 years. (c)

Within how many years must a buyer bring a lawsuit for breach of an oral agreement against the broker? - 1 year - 2 years - 3 years - 4 years

The Statute of limitation requires lawsuits for breach of an oral agreement to be filed within two years of the breach. (b)

A buyer must bring a lawsuit for breach of written contract against a seller within: - 6 months - 1 year - 3 years - 4 years

The Statute of limitations requires lawsuits for breach of a written contract to be filed within four years of the breach. (d)

Broker Fisher an agency listing in writing from the Walker Co. on a commercial building that had been vacant for some months. The listing broker entered into an oral agreement to share his commission with a cooperating broker. The cooperating broker procured a buyer, but broker Fisher refused to split the commission. The cooperating broker: - May recover his share in court - May not recover his share in court because this was only an oral agreement - Should ask the Commissioner to arbitrate the dispute - Should go to the Labor Commissioner

The statute of frauds foes not require an agreement between brokers to split a commission to be in writing to be enforceable. If the cooperating broker can prove his case, he can recover his share in court. (a)

The statute of frauds requires which of the following contracts to be in writing? - An employment contract to represent the seller of a business opportunity - A contract selling a business opportunity - A contract that is not to be performed within one year of its making - A nine-month lease

A contract that is to be performed within one year of its making must be in writing in order to be enforceable under the statute of frauds. (c)