Real Estate Chapter 8

An offer is terminated when: A. Revoked by the offeree B. An agreement that by its terms is not to be performed within one year. C. Rejected by the offeree. D. Changed by the offeror

C. Rejected by the offeree.

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: A. Invalid B. Voidable C. Valid D. Void

C. Valid

A contract that is made without consideration is: A. Void. B. Illegal. C. Enforceable. D. Valid.

A. Void.

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: A. Consideration B. Partial performance C. Acceptance D. Mutual consent

A. Consideration

Substituting a new contract for an existing one, with the intent to extinguish the original contract, best describes. A. Novation B. 1 Year C. An assignment D. Tender

A. Novation

A simple contract may be best defined as: A. An agreement in writing. B. An offer and an acceptance. C. A number of promises. D. A recorded agreement.

B. An offer and an acceptance

An executory contract is a contract that: A. Has been fully performed. B. Is yet to be performed. C. Must be in writing. D. Is unenforceable.

B. Is yet to be performed.

The word "rescind" most nearly means: A. Changed B. Terminated C. Substituted. D. Endorsed

B. Terminated

A contract to perform an illegal act is: A. Enforceable. B. Unenforceable. C. Valid. D. Illusory.

B. Unenforceable

A contract signed under duress is: A. Void. B. Voidable. C. Illegal. D. Enforceable.

B. Voidable

Based on the Statute of Frauds which of the following contracts would not be required to be in writing? A. An option to purchase real estate. B. An agreement that by its terms is not to be performed within one year. C. A general partnership agreement. D. A land contract of sale.

C. A general partnership agreement.

In the event there is an encroachment on another's property, legal action to have it removed must be commenced within: A. 6 months. B. 1 Year C. 3 Years D. 5 Years

C. 3 Years

A listing signed by either spouse to sell community real property is usually: A. Illegal. B. Voidable. C. Enforceable. D. Unenforceable

C. Enforceable

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: A. Void B. Voidable C. Valid D. Illegal

C. Valid

The maximum time allowed under the law to bring legal action to enforce a judgment is: A. 1 Year B. 3 Years C. 4 Years D. 10 years

D. 10 years

All of the following are essentials of a simple contract except: A. Lawful object. B. Mutual consent. C. Parties capable of contracting. D. A contract in writing.

D. A contract in writing.

Which of the following remedies are available to an injured party who has suffered a breach of contract? A. Unilateral rescission. B. A suit for damages. C. A suit for specific performances. D. All of these choices

D. All of these choices

Sufficient consideration under a contract may be: A. Money. B. A promise. C. Property. D. Any of these choices

D. Any of these choices

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: A. 90 days. B. One year. C. Two years. D. Four years

D. Four years

Which of the following is not an essential element of a contract? A. Offer. B. Acceptance. C. Consideration. D. Performance.

D. Performance.