Re 414 Quiz 7

Sally the Seller and Bobby the Buyer are about to sign the closing documents when a fire truck rushes by. The house is burning down! The documents are not signed. Which of these outcomes adheres to the rights provided by the Uniform Vendor and Purchaser Risk Act?

Bobby does not have to pay the closing costs and will get his earnest money back

This is a legal written agreement between a buyer and seller that states the purchase price and other terms of understanding by which real property will be transferred.

Contract for sale

Can a broker enforce an oral listing agreement for his neighbor's home?

No

What is the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not

Henry wants to submit an offer for Lacy's house. Under the statute of frauds, which of the following is NOT a requirement must meet for his offer to become an enforceable purchase agreement?

The contract must be notarized

Two intoxicated co-workers sign a contract in which they agree to marry each other if they're both still single when they reach age 40. Which of the following is true about this contract?

This is voidable contract because the parties were intoxicated at the time they signed it

Robert and Sarah enter into a contract for Sarah to purchase Robert's home. Robert decides he does not want to sell and is elated when he finds out that Sarah's only 17 years old. Can Sarah force Robert to sell?Yes, Sarah can require that Robert fulfill the contract terms.

Yes, Sarah can require that Robert fulfill the contract terms.

Failure to perform a contract is Group of answer choices

a breach

When both parties agree to cancel a contract, they effect

a rescission

The owner of a one-person shoe repair shop is

a sole proprietor

Martha makes an offer to buy Drake's home, and he accepts it. Under the terms of the agreement, Martha is supposed to put down an earnest money deposit of $10,000. However, she only puts down $5,000. Drake accepts the lesser deposit, and the sale ultimately is finalized. This is an example of ______.

accepting partial performance

Mary persuaded her elderly Aunt Agnes to buy a grossly overpriced condominium. Mary knew the price was too high, but she received a commission on the sale from the seller. Aunt Agnes may complain of Group of answer choices

actual fraud and undue influence

Todd made an offer for the Brown residence, and the Browns accepted the offer. On reconsidering, Todd decided to back out of the deal, and the Browns agreed to let him do so. Todd and the Browns then signed

an agreement rescinding the purchase contract

All the following are true regarding implied agreements EXCEPT which one?

an implied agreement is based on a formal agreement

If a buyer's performance of her sales contract becomes economically impractical, she should

ask that the contract be terminated

In a real estate transaction, which of the following is established when parties enter into an agreement voluntarily with full understanding of the contract terms?

consent

Lonnie and Karen have a contract to buy the Santos house. Following a four-day rainstorm, the Santos house was pushed off its foundation by a mudslide and is now resting about halfway over a ravine. The contract probably is

discharged because performance is impossible

In contract law, partial performance occurs when a party ______.

does some, but not all, of what the party has agreed to do

Which of these groups of people are considered legally able to enter into a contract in California?

emancipated minors, alines, LLCs

Drew signed a contract to sell his farm to George. Drew had second thoughts and refused to sell, but the sale went through anyway. How did this happen?

george threatened drew

The rule for preprinted contracts is

handwriting takes precedence over both typing and printing

A 17-year-old can contract as an adult if she

is emancipated

The residents of Blair Avenue are a close-knit bunch. They are all young couples with small children, and they don't want this dynamic to change when two of the couples have to move. Those couples sign an agreement promising not to sell to anyone without kids or to anyone over the age of 50. The contract cannot be enforced because it's missing ______.

legal purpose

Mary has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. This way, the house stays in the family. After her mother finds a suitable senior apartment and moves, Mary writes a check for the agreed-upon amount, and her mother transfers the deed to Mary. What is happening in this scenario?

performance

Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It is two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?

real estate contracts must be in writing

A property description including the words "250 acres, more or less" is

sufficient if reasonably close to the exact acreage

California's Uniform Vendor and Purchaser Risk Act clarifies the rights granted to whom?

the buyer and the seller

The time period in which a lawsuit can be brought is set by

the statute of limitations

You receive an offer in the mail that says you're eligible to win a cash prize if you place some stickers on a form and return it to the sender. What type of contract is this?

unilateral contract

Which is NOT a way to terminate a contract?

verification

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. If time machines don't actually exist (for now), what type of contract is this?

void