Section 10: Unit 3 Practice Exam

Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come through. She decided that if the subcontractor weren't going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ______. Accepting partial performance Mutually rescinding the contract Rescinding the contract unilaterally Suing for damages

Rescinding the contract unilaterally

In which of the following scenarios is impossibility of contract performance occurring? Both parties fully meet the terms of the contract. Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do. One or both parties have completed only a portion of the terms agreed to in the contract. One party didn't meet the terms of the contract in the specified timeframe and is being required to do exactly what was agreed to in the contract.

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates? Haste makes waste Patience is a virtue Seek the advice of an attorney Time is of the essence

Time is of the essence

Shannon and Rene are sisters who entered into a contract to buy an income property. The sisters got into a dispute, and Shannon wants out of the deal. However, their uncle Jerry wants to replace Shannon on the contract. Shannon agrees to the substitution so they go ahead and do it. If Jerry fails to live up to his obligations under the contract though, Shannon will be held responsible. Of what is this an example? Assignment Fraud Mutual mistake Novation

Assignment

When does partial performance of a contract occur? Both parties fully meet the terms of the contract. Due to circumstances out of their control, the parties cannot legally or practically do what they've agreed to do. One or both parties have completed only a portion of the terms agreed to in the contract. One party did not meet the terms of the contract in the specified timeframe and is being required to do exactly what was agreed to in the contract.

One or both parties have completed only a portion of the terms agreed to in the contract.

When can specific performance be enforced under a sales contract? Both parties have fully met the terms of the contract. One or both parties have completed only a portion of the terms agreed to in the contract. One party didn't meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract. The parties to a contract can't legally or practically do what they've agreed to do due to circumstances out of their control.

One party didn't meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract.

In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example? A void contract Contract execution Legal purpose Partial performance

Partial performance

Which one of the following statements is true regarding a partially performed sales contract that otherwise contains all of the essential elements? The contract can't close. The contract is unenforceable in court. The contract is void. The contract is voidable.

The contract is voidable.