chapter 7

A contract that is a promise for a promise is known as a unilateral contract. void contract. voidable contract. bilateral contract.

bilateral contract.

Failure to perform a contract obligation is known as a novation. breach. rescission. release.

breach.

When both parties to a contract agree to substitute a new agreement for the present one, this is known as a release. breach. rescission. novation.

novation.

Both parties agree to cancel a contract in the process of novation. release. rescission. reformation.

rescission.

A contract that has no legal effect from its inception is a voidable contract. valid contract. void contract. quasi contract.

void contract.

To be enforceable, real estate sales agreements must be acknowledged. be recorded. contain a granting clause. be in writing.

be in writing.

Performance of a contract may be excused if a party can prove which of the following? Lack of negotiating skill Novation Impracticability of performance A better deal elsewhere

Impracticability of performance

Which of the following is NOT a way to terminate a contract? Release Novation Verification Rescission

Verification

The typical real estate purchase agreement is a voidable contract. a unilateral contract. a bilateral contract. an implied contract.

a bilateral contract.

A contract that has yet to be performed is known as an implied contract. executed contract. express contract. executory contract.

executory contract.