Flashcards in Chapter 6: Contracts Deck (18)
If there is a "time is of the essence" clause in a contract, failure of a party to the contract to perform within the time specified will render the contract __________ .
The failure of one party to perform a duty under the terms of a contract is known as:
breach of contract.
In California, buyer paid liquidated damages to a seller of a one to four unit dwelling, when the seller intends to occupy one of the dwellings, cannot exceed:
3% of the sales price if the amount of earnest money deposit is over 3%.
A minor change in an offer by the offeree constitutes:
a counter offer
In order to be valid, a contract must have certain required elements. Which of the following is not a required element?
A voluntary agreement between legally competent parties to do or refrain from doing something is known as:
A voidable contract is one that is:
enforceable, but is subject to rescission by one of the parties.
When a seller's lender allows a buyer to assume the seller's existing mortgage and relieves the seller of any further liability for repayment of the loan, __________ has occurred.
A novation occurs when a new contract is formed by substituting a new party to a contract for an original party or a new obligation for an old one
To create a valid real estate contract, the acceptance of a written offer must be: (three items)
1. within the time specified in the offer.
2. in writing.
3. delivered to the offeror.
The lawsuit filed to compel a seller to convey real property to a buyer under the terms of a valid contract is known as a suit for:
A contract that has been fully performed by all parties is known as:
an executed contract.
"This is the most beautiful landscaping I have ever seen" is an example of __________ .
The Statute of Frauds requires:
certain contracts to be in writing.
A written contract is:
an express contract.
The terms of a verbal real estate listing agreement between a seller and a real estate agent is enforceable when:
1. the listing agent is the procuring cause of the sale.
2. the sale of the home is closed in escrow.
3. a ready, willing, and able buyer is found for the property by any party.
4. None of the above
None of the above
A civil wrong causing damage to another is known as a __________ .
A contract that has no force or effect in law is __________ .