Chapter 6 - Contracts Flashcards Preview

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Flashcards in Chapter 6 - Contracts Deck (18)
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1

A voidable contract is one that is

enforceable, but is subject to rescission by one of the parties

2

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

3

In California, buyer-paid liquidated damages to a seller of a one-to-four unit dwelling, when the buyer intends to occupy one of the dwellings, (check all that apply)

  • will be the amount agreed to in the contract if the earnest money deposit is less than 3%
  • cannot exceed 3% of the sales price if the amount of earnest money deposit is over 3%
  • can be any amount agreed to when there is no liquidated damages clause signed by the buyer and seller 

  • will be the amount agreed to in the contract if the earnest money deposit is less than 3%
  • cannot exceed 3% of the sales price if the amount of earnest money deposit is over 3%

4

An offer to purchase property would NOT be terminated by which one of the following events? 

  • the absence of earnest money
  • a counter offer
  • the death of the offeree prior to acceptance
  • the offeror withdrawing the offer prior to acceptance by the offerree 

the absence of earnest money 

5

The terms of a verbal real estate listing agreement between a seller and a real estate agent is enforceable when:

  • the listing agent is the procuring cause of sale
  • a ready, willing, and able buyer is found for the property by any party
  • the sale of the home is closed in escrow
  • none of the above 

none of the above 

6

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 ____.

void 

7

a minor change in an offer by the offeree constitutes 

a counter offer 

8

a written contract is 

an express contract 

9

a contract that has been fully performed by all parties is known as 

an executed contract 

10

The statute of frauds requires 

certain contracts to be in writing 

11

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 

specific performance 

12

The failure of one party to perform a duty under the terms of a contract is known as 

breach of contract 

13

In order to be valid, a contract must have certain required elements. which of the following is not a required element 

 notarization 

14

a contract that has no force or effect in law is ____

void 

15

"This is the most beautiful landscaping I have ever seen" is an example of ____ 

puffing 

16

to create a valid real estate contract, the acceptance of a written offer must be:

  • -within the time specified in the offer
  • -deliverd to the offeror
  • -in writing
  • -all of the above

All of the above 

17

A civil wrong causing damage to another is known as a ____

tort 

18

A voluntary agreement between legally competent parties to do or refrain from doing something is known a s 

a contract