Real Estate Chapter 6 QUIZ

The current award for liquidated damages on a purchase agreement form is a maximum of:

A. 13% of the home purchase price B. 33% of the home purchase price C. 133% of the home purchase price D. 3% of the home purchase price Correct ANSWER IS D

Which of the following is not a remedy for breach of contract?

A. Action for dollar damages B. Substitute performance C. Unilateral performance D. Specific performance Correct answer is B

Which of the following forms are apart of CAR's "Purchase agreement package"

A. All answers are correct B. buyer's inspection Advisory C. (AD) D. WFA Correct answer is A

An agreement that is made either verbally or in writing is known as a(n):

A. All of the above B. Mutual consent C. Implied contract D. Express contract Correct answer is D

A remedy for breach can be:

A. An action for damages B. A unilateral rescission C. All answers are correct. D. An acceptance of breach Correct ANSWER IS C

Consideration can be best described as:

A. Anything of Value B. Not necessary in valid contract. C. Money paid in a contract. D. Good will Correct ANSWER IS A

If one of the parties doesn't go through with a contract (non performance) it is called a(n):

A. Breach B. Operation of law C. Assignment D. Consideration Correct answer is A

Which of the following is not considered a basic element of a contract?

A. Capacity B. Consideration C. Mutual consent D. Enforcement Correct answer is D

Which of the following is used to change the original terms of the purchase agreement?

A. Contingency form B. Covenant forms C. Counter offer form D. Substitution form

A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:

A. Covenant B. All answers are correct C. "Subject to" provision or contingency clause. D. Loan back - out Clause Correct ANSWER IS C

If a contract is said to be "executory" it:

A. Has been discharged or performed B. is court ordered C. Has not yet been signed D. Has not yet been completely performed Correct answer is D

A written contract between two parties is:

A. Implied and Bilateral B. Express and Unilateral C. Implied and Unilateral D. Express and Bilateral Answer is D

Any contract that cant be performed within one year from the date of signing:

A. Is illegal B. Must be in writing C. is a failure to perform D. is an example of duress Correct answer is B

An Assignment:

A. Is only for personal Service B. Transfers a person's right in a contract C. Is a new contract D. Transfers only liability Correct ANSWER IS B

What is always true about a counter offer?

A. It terminates the previous buyer B. The previous offer is still valid. C. It is made by the buyer D. It is made by the seller Correct ANSWER IS A

When an existing contract is replaced with an entirely new contract, it is called:

A. Subordination B. Assignment C. Rescission D. Novation. Correct ANSWER IS D

A signed written contract takes precedence over oral agreements or prior written agreements based on:

A. The statute of Frauds B. The parol evidence rule C. The performance rule D. English common law Correct answer is B

Which of the following is FALSE concerning options?

A. They have a specific time periods. B. They are granted in exchange for money. C. They require that the optionee (purchaser) always goes through with the purchase. D. They have specific terms. Correct ANSWER IS C

Which of the following is a classification of a contract?

A. Voidable B. All Answers are correct C. Unenforceable D. Valid Correct ANSWER IS B

Which of the following is FALSE concerning purchase agreement contracts?

A. When acceptance is communicated to the buyer, it becomes a binding contract. B. Promissory notes and post-dated checks are never acceptable as consideration. C. An agent must give a copy to both buyer and seller. D. They must be accompanied by a deposit of money or other items of value. Correct ANSWER IS B