Real Estate Questions Ch. 16

The minimum age for married persons who can sign a legal and binding contract is

A. 17.

The following people participated in the preparation of a false, fictitious real estate contract which was submitted to a lending agency. Which ones are guilty of substantial misrepresentation?

A. Buyer and real estate broker. B. Seller and sales associate.

Competent parties are essential for the validity of a contract. In addition, which of the following is (are) required in order for the contract to be valid?

A. Legality of objective.

Mr. Weak made a bona fide offer to buy property listed with you. As the broker or licensee, you present the offer the next morning and leave your party a signed copy of the acceptance. That afternoon you are shocked to learn that Mr. Weak died the previous night. Based on this information, which of the following would best describe this situation?

A. Weak's death terminated the offer.

The Statute of Frauds, as applied to real estate sales contracts, requires that

A. all contracts for the sale of real property, in order to be enforceable, must be in writing. B. such contracts must be signed by the party to be charged thereby.

A valid and binding agreement for sale of real estate must

A. be entered into by competent parties. B. be bound by a consideration. C. cover a legal and moral act.

Noah Count, buyer, defaulted on his sales contract with Don Trodden, the seller. Trodden may

A. cancel and declare the contract forfeited. B. sue for specific performance. C. sue Count for damages.

An executed contract is a:

A. contract completed and fully performed.

For a real estate contract to be binding and enforceable, it must be

A. entered into by competent parties and bound by consideration. B. for a legal or moral act, in writing, and have an offer and acceptance.

A valid contract may be voided if entered into as a result of

A. fraud B. duress C. mistake in contract

Which of the following is not an essential element in ALL contracts:

A. in writing

A contract may be discharged by

A. performance of the parties. B. mutual assent of the parties.

What is a rescission of a contract?

B. A return to the situation as it was before the contract was executed.

A broker, if involved in the utilization of dual contracts, is

B. a party to fraud.

In anticipation of a breach of contract, the parties may specify in the contract the amount of damages to be paid in case of a breach. This is known as the

B. liquidated damages clause.

Under the Statute of Frauds, all contracts for the sale of real estate must be in writing to be enforceable in court. The principal reason for this statute is to

B. prevent perjury & fraudulent proof of fictitious oral contract.

The Uniform Vendor and Purchaser Risk Act provides that when property under contract of sale is destroyed by fire prior to the transaction being closed, at no fault of the purchaser who is not in possession, the assumption of risk falls upon the

B. seller.

A contract signed under duress is

B. voidable.

Which of the following does not terminate an offer to sell real estate?

C. Death of the sales associate.

The amount the parties of a contract may stipulate be paid in the case of default is called

C. Liquidated damages.

An offer becomes binding upon the offeree when

C. accepted by the offeree.

The substitution of a new contract and/or party for an existing one is a (n)

C. novation.

The Statute of Frauds involves contracts which must be in writing to be enforceable. Which of the following falls within the Statute of Frauds? I. A contract for the sale of real property. II. A contract for the sale of an interest in real property. III. A contract for the leasing of real property for two (2) years.

D. All of these.

The Statute of Frauds

D. Key word here is enforceable. Oral contracts are legal. However, all enforceable contracts for the transfer of real property must be evidenced by a written agreement.

If both parties are thinking the same thing and there is an offer and acceptance, there is said to be

D. meeting of the minds.

Mr. Roe is a trustee of the estate of a minor, Miss Young. He persuades her by threats to sell her land to a dummy corporation that he has formed. Unfortunately, unknown to him the land floods each spring when the snow thaws and remains under water for months. When he discovers this fact, Mr. Roe asks the court to void the sale because of his mistake. The court should

D. not void the contract because he is not the innocent party.

The withdrawal of an offer before acceptance is a

D. revocation.