Chapter 5: Contracts
What is always true about a counter offer?
It terminates the previous offer.
Consideration can best be described as:
Anything of value
Which of the following is used to change the original terms of the purchase agreement?
Counter offer form
Which of the following is NOT considered a basic element of any contract?
Enforcement
A written contract between two parties is:
Express and bilateral
An agreement that is made either verbally or in writing is known as a(n):
Express contract
If a contract is said to be "executory," it:
Has not yet been performed
Any contract that can't be performed within one year from the date of signing:
Must be in writing
Which of the following is FALSE concerning purchase agreement contracts?
Promissory notes and post-dated checks are never acceptable as consideration.
Which of the following are remedies for breach of contract?
Specific performance, Action for dollar damages, Acceptance of breach and Unilateral rescission
Of the following, which most nearly means the same thing as "rescind"?
Terminate
A remedy for breach can be:
a unilateral rescission, an action for damages, and an acceptance of breach
If one of the parties doesn't go through with a contract (nonperformance), it is called a(n):
breach
When an existing contract is replaced with an entirely new contract, it is called:
novation
A signed written contract takes precedence over oral agreements or prior written agreements based on:
the parol evidence rule
An assignment:
transfers a person's right in a contract
A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:
"subject to" provision or contingency clause.
The current award for liquidated damages on a purchase agreement form is a maximum of:
3% of the home purchase price
Which of the following is a classification of a contract?
Valid, Voidable, Unenforceable
Which of the following is FALSE concerning options?
They can be revoked at any time by the optioner (seller), without penalty.