Exam 6: Contracts

Liquidated damage provisions contained in a contract are designed to punish a party for not performing.

A real estate broker cannot represent both the seller and the purchaser in a transaction.

A listing agreement whereby an owner hires only one broker to assist in selling the property and the owner agrees that if the real property is sold, even if through the owner's efforts, a commission is owed is known as an exclusive right-to-sell listing.

A real estate broker can have only express authority.

Liquidated damage provisions contained in contracts are always enforceable.

Which of the following persons would a power of attorney most likely be given to?

Limited partners in a limited partnership must approve all contracts of the limited partnership.

Under an exclusive listing, an owner hires only one broker to assist in the sale of the real property.

An executor always has the power to buy and sell real property on behalf of an estate.

Which of the following is/are grounds for revocation of a power of attorney?

The remedy for breach of a real estate contract that requires that the defaulting party perform its obligations under the contract is known as:

Which one of the following lacks legal capacity to enter into a binding contract?

The remedy of rescission provides the injured party under a real estate contract with the following relief:

An agreement whereby an owner hires a broker to sell real property is known as a power of attorney.

Pat Purchaser purchased a home from Sonja Seller. Sonja represented that the basement did not leak. Pat discovered a few months after the purchase and a hard rain that the basement did leak. Pat hired a building inspector to examine the basement and was told that it had been leaking for some time and it would be expensive to fix the problem. Pat did nothing about it at the time. A year later, after another hard rain, Pat sued Sonja and demanded resc ission of the sale, return of her purchase money, and reimbursement for the expense of a deck that Pat built on the home following the purchase. Will Pat be able to rescind the sale? Explain your answer.

A real estate contract must be in writing to be enforceable.

A real estate broker may have both express authority and implied authority.

A real estate broker is not a fiduciary.

Lack of knowledge or inability or failure to read a contract does not make a person mentally incompetent.

Illiteracy of a party renders a contract unenforceable.