ENGRADE Chapter 8 Flashcards

1
Q

All of the following are essential to the formation of a contract

A

OFFER

ACCEPTANCE

CONSIDERATION

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2
Q

Which of the following documents must be written under the Statute of Frauds in order to be enforceable in a court of law?

A

Offer to Purchase and Contract

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3
Q

A crier of an auction is NOT required to have a real estate license

A

TRUE

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4
Q

If there is a dispute between the buyer and the seller over the return or forfeiture of earnest money held by the broker, the broker

A
  • Holds the money until the courts decide or the parties agree in writing
  • Is allowed to turn the money over to the clerk of court after giving a 90 day notice to all parties
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5
Q

Rejected offers and counter offers must be kept for

A

3 years

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6
Q

A listing broker schedules an appointment to present a purchase offer to the seller. The seller has serious health problems and her son is attending to her health care. When the broker arrives he finds the seller’s son and daughter in law present. In the broker’s presence, both persistently urge the seller to accept the offer. The seller is reluctant to accept since the offer is substantially less than the list price. If the seller accepts the offer under these circumstances, she may later claim that

A

She was under undue influence from her son and daughter in law and therefore the contract is VOIDABLE

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7
Q

A man has posted a $100 reward for anyone who returns his missing dog. This is an example of

A

Bilateral contract

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8
Q

The seller unintentionally misrepresented that the soil of a lot was suitable for the construction of a building at the time the buyer was negotiating the purchase of the lot for the site of a new home. After entering into a contract to purchase, the buyer learned that contrary to the seller’s statement, the soil was unsuitable for construction. This is an example of a contract that is probably

A

VOIDABLE by the buyer because of the seller’s mistake

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9
Q

The law requiring real estate contracts to be in writing in order to be enforceable is the

A

Statute of Frauds

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10
Q

The legal remedy to enforce the terms of a contract is known as

A

SPECIFIC PERFORMANCE

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11
Q

The term “rescission” is best defined as

A

CANCELLATION

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