Chapter 7: Contract Law

A contract entered into by a minor is 1. illegal 2. voidable 3. valid 4. unenforceable

Voidable

A meeting of the minds creating enforceable rights is called: 1. a contract 2. a deed 3. an estoppel 4. a lien

A contract

A contract that results when a promise is exchanged for a promise is called 1. bilateral contract 2. unilateral contract 3. express contract 4. implied contract

Bilateral contract

A man put up $10,000 as earnest money on a property for sale. The next day, he needed the money back and attempted to cancel his offer. Which of the following is true?1. He can get out of the offer because he has a three day right of rescission 2. The decision would be entirely up to the broker 3. He can get out of the offer because of the six-day right of rescission 4. He would have to revoke the offer before the seller accepted it

He would have to revoke the offer before the seller accepted it

A real estate contract may be declared void if: 1. It is signed and not read 2. It is signed with a witnessed X 3. Signed by only one party 4. It is signed by an unmarried minor

It is signed by an unmarried minor

The sum of money agreed upon in advance to be the damages in the event certain problems occur later is best described as 1. judgement damages 2. liquidated damages 3. default damages 4. punitive damages

Liquidated damages

All of the following are essential elements of a contract EXCEPT 1. Competent parties 2. Lawful objective 3. Monetary consideration 4. Meeting of the minds

Monetary consideration

Two persons make an oral agreement. A day later they put it in writing with several small changes. What is true about the agreement in a court of law? 1. The oral one would prevail 2. The written one would prevail 3. A new agreement must be made 4. The agreement must be notarized to be legal

The written one would prevail

If a real estate contract is breached and the damaged party wants the contract carried out, he would sue for 1. specific performance. money damages 2. money damages, novation, unilateral recession 3. novation 4. unilateral recession

specific performance. money damages

A contract created under duress is 1. invalid 2. voidable. unenforceable. void 3. unenforceable 4. void

voidable. unenforceable. void