Real Estate 11 Chapter 8

All of the following are essentials of a simple contract except:

A contract in writing. Only certain contracts as spelled out in the Statute of Frauds need be in writing

A simple contract may be best defined as:

An offer and an acceptance An offer and an acceptance is a fine definition of a simple contract

The maximum time allowed under the law to bring legal action to enforce a judgment is:

10 years the Statute of Limitations allows a judgment to be effective for a period of up to ten years

In the event there is an encroachment on another's property, legal action to have it removed must be commenced within:

3 Years The Statute of Limitations specifies a three year limit for legal action on an encroachment

Based on the Statute of Frauds which of the following contracts would not be required to be in writing?

A general partnership agreement. The general partnership contract need not be in writing according to the Statute of Frauds

Sufficient consideration under a contract may be:

Any of the preceding. Consideration for a contract may be money, a promise or property

When one party under a bilateral contract gives a promise in exchange for an offered promise by the other party, it is referred to as:

Consideration Consideration may be money, services or an exchange of promises

A listing signed by either spouse to sell community real property is usually:

Enforceable. The property of the community can be held liable for a contract executed by either spouse without the consent of the other and it would be enforceable.

The Statute of Limitations specifies that time limits in which lawsuits must be brought to court in the event of a breach. Under this statute, a buyer must bring legal action against a seller for failure to perform under a valid purchase contract within:

Four years The Statute of Limitations specifies legal actions must be commenced within four years under any written contract

An executory contract is a contract that:

Is yet to be performed. An executory contract is one that is yet to be performed.

Substituting a new contract for an existing one, with the intent to extinguish the original contract, best describes.

Novation The statement of the question is a good definition of Novation

Which of the following is not an essential element of a contract?

Performance. Two parties may enter into a contract but they may never actually fulfill (perform) their obligations

An offer is terminated when:

Rejected by the offeree. An offer will be terminated when rejected by the offeree or revoked by the offeror

The word "rescind" most nearly means:

Terminated to rescind a contract means to terminate or cancel it

A contract to perform an illegal act is:

Unenforceable. A contract that is illegal is void and unenforceable

Which of the following remedies are available to an injured party who has suffered a breach of contract?

Unilateral rescission. A suit for damages. A suit for specific performances. All of the above. The injured party may rescind the contract or sue for damages or specific performance

Mr. Smith entered into an oral agreement to lease Mr. Rose's property for 12 months at $700 a month. Mr. Smith decides not to comply with the agreement claiming that the agreement must be in writing to be enforceable. Based on the law, the contract is:

Valid The Statute of Frauds requires leases for more than a year to be in writing.

Mr. and Mrs. Cable listed their home with a licensed real estate broker for $187,500. The broker sold the property to another married couple and escrow was opened by the buyers and sellers. Two weeks after opening escrow the title company discovered that the buyers were both under 18 years of age. Under these circumstances, the purchase contract is:

Valid The legal age to enter a real estate purchase contract is 18 years of age unless that person is married.

A contract that is made without consideration is:

Void. Consideration is one of the essentials to a contract and without it the contract is void.

A contract signed under duress is:

Voidable. the party that was forced to sign the contract under duress has the right to void the contract, making it voidable