Unit 9 National Ownership

Which of the following is an executory contract?

A sale contract before closing.

What is the statute of limitations?

A set period of time during which an injured party can rescind a contract

What is a contract?

An intangible agreement between parties to perform or refrain from performing some act.

Can an oral contract between a buyer and a seller to transfer real estate be enforced?

No, real estate sales contracts must be in writing.

A buyer decides after making an offer on a house that he would rather buy a different one. What does he have to do to get out of the first offer?

Revoke the offer before the seller has accepted it

Al offered seller Tim $60,000 for a parcel of land but Tim never responded to Al's offer. Two weeks later Tim sold the land for $58,000 to an out-of-state buyer. Neighbor Al has sued for breach of contract. What can be said about Al's actions?

There is no contract unless both parties have an agreement.

A contract that conveys an interest in real estate must

contain a legal description of the property.

Once a transaction closes, a contract is said to be

executed

A homeseller signs a listing agreement with a broker and the next week decides not to sell and revokes the listing. Which of the following is true?

The broker may have a claim for damages.

A buyer submits an offer to a seller and then dies in a car accident. Before learning of the buyer's death, the seller accepts the offer. Which of the following is true?

The buyer's death terminated the offer.

The necessary condition of mutual consent may be found lacking in a contract if

the offer that was accepted is vague.

All of the following will terminate a contract EXCEPT

assignment of the contract.

How much time does a seller have to accept a buyer's offer if the offer does not have an expiration date?

A "reasonable" time, or until the expiration date on the offer

Which of the following contracts can be assigned to another party?

A contract for the sale of a house

Which of the following statements about contract revocation is TRUE?

It may not relieve the revoking party of contract obligations.

A buyer makes an offer with a 48-hour expiration time. 12 hours later, she changes her mind and informs the seller that the offer is withdrawn? What is the status of the offer?

The offer is extinguished along with the seller's right to accept it.

In which circumstances would a buyer most likely sue for specific performance?

The seller backed out of the original sales contract.

When does an offer become a contract?

When the offeree gives the offeror notice of the acceptance

A breach of contract is

the failure of a party to perform according to the terms of the contract.

An implied contract may be deemed to exist between parties ifAn implied contract may be deemed to exist between parties if

any of the parties acts as if there is a contract.

In a suit for damages by reason of default, the damaged party may claim liquidated damages if

the contract stated a specific amount due to a damaged party.