Question 1

To be legally competent, a person must reach the age of

Accepted Answer

A)  minority. 
B)  majority. 
C)  reasonable competence. 
D)  17 years. 
A)  minority. 
B)  majority. 
C)  reasonable competence. 
D)  17 years. B

Question 2

The requirement that transfers of real property be in writing is known as

Accepted Answer

A)  contract law. 
B)  the bill of rights. 
C)  the statute of frauds. 
D)  due process. 
A)  contract law. 
B)  the bill of rights. 
C)  the statute of frauds. 
D)  due process. C

Question 3

An acknowledgement is necessary for a valid real estate contract.

Accepted Answer

A) True 
 B)False  False

Question 4

Money or anything worth money exchanged in a contract is classified as unilateral consideration.

Accepted Answer

A) True 
 B)False

Question 5

Choose the one most appropriate answer for each.
-a contract in which one party makes a promise or begins performance without first receiving any promise to perform from the other

Accepted Answer

A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract 
A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract

Question 6

A(n)____________________ contract results when a promise is exchanged for performance.

Accepted Answer

The answer of A(n)____________________ contract results when a promise is...

Question 7

Which of the following is an essential element of a contract?

Accepted Answer

A)  A counter offer 
B)  Acceptance 
C)  Performance 
D)  A fair price 
A)  A counter offer 
B)  Acceptance 
C)  Performance 
D)  A fair price

Question 8

A lawsuit for _________________________ is an action in court by the innocent party to force the breaching party to carry out the remainder of the contract according to the precise terms, price and conditions agreed upon.

Accepted Answer

specific p

Question 9

Choose the one most appropriate answer for each.
-the party who makes an offer

Accepted Answer

A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract 
A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract

Question 10

For an agreement to be enforceable it must be supported by ____________________ to demonstrate that a bargain has been struck between the parties to the contract.

Accepted Answer

The answer of For an agreement to be enforceable it...

Question 11

A real estate contract can be declared void if

Accepted Answer

A)  it is signed and not read. 
B)  It is signed with a witnessed X. 
C)  signed by only one party. 
D)  it is signed by an unmarried minor. 
A)  it is signed and not read. 
B)  It is signed with a witnessed X. 
C)  signed by only one party. 
D)  it is signed by an unmarried minor.

Question 12

A man put up $10,000 as earnest money on a property for sale. The next day, he needed the money back and attempted to cancel his offer. Which of the following is true?

Accepted Answer

A)  He can get out of the offer because he has a three day right of rescission. 
B)  The decision would be entirely up to the broker. 
C)  He can get out of the offer because of the six-day right of rescission. 
D)  He would have to revoke the offer before the seller accepted it. 
A)  He can get out of the offer because he has a three day right of rescission. 
B)  The decision would be entirely up to the broker. 
C)  He can get out of the offer because of the six-day right of rescission. 
D)  He would have to revoke the offer before the seller accepted it.

Question 13

The broker and the seller know of major plumbing repairs to be made. They sell the house to a buyer "as is" but do not disclose the plumbing problems. The buyer discovers the defects after closing and sues the broker and seller. Most likely, the buyer can collect, because the defect should have been disclosed.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are essential elements of a contract EXCEPT

Accepted Answer

A)  competent parties. 
B)  lawful objective. 
C)  monetary consideration. 
D)  meeting of the minds. 
A)  competent parties. 
B)  lawful objective. 
C)  monetary consideration. 
D)  meeting of the minds.

Question 15

A lease is an example of a

Accepted Answer

A)  non-contractual agreement. 
B)  declaration of intent. 
C)  unilateral contract. 
D)  bilateral contract. 
A)  non-contractual agreement. 
B)  declaration of intent. 
C)  unilateral contract. 
D)  bilateral contract.

Question 16

An executory contract is a

Accepted Answer

A)  contract which has been completely executed. 
B)  contract in which certain things are still to be done. 
C)  will in probate for which an executor has been named. 
D)  contract which has not been signed. 
A)  contract which has been completely executed. 
B)  contract in which certain things are still to be done. 
C)  will in probate for which an executor has been named. 
D)  contract which has not been signed.

Question 17

A unilateral contract results when a promise is exchanged for a promise.

Accepted Answer

A) True 
 B)False

Question 18

Choose the one most appropriate answer for each.
-to cancel a contract and restore the parties involved to their respective positions before the contract was made

Accepted Answer

A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract 
A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract

Question 19

Choose the one most appropriate answer for each.
-a sum of money called for in a contract that is to be paid if the contract is breached

Accepted Answer

A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract 
A) assign 
B) attorney-in-fact 
C) breach of contract 
D) competent party 
E) consideration
F)counteroffer
G)duress
H)forbear
I)fraud
J)liquidated damages
K)money damages
L)mutual agreement
M)novation
N)offeror
O)rescind
P)specific performance
Q)statute of frauds
R)unilateral contract
S)void contract
T)voidable contract

Question 20

The agency relationship of a real estate broker with his client is most often established by

Accepted Answer

A)  an implied contract. 
B)  express contract. 
C)  an endorsement. 
D)  a ratification. 
A)  an implied contract. 
B)  express contract. 
C)  an endorsement. 
D)  a ratification.

Exam 6: Contract Law

To be legally competent, a person must reach the age of

The requirement that transfers of real property be in writing is known as

An acknowledgement is necessary for a valid real estate contract.

Money or anything worth money exchanged in a contract is classified as unilateral consideration.

Choose the one most appropriate answer for each. -a contract in which one party makes a promise or begins performance without first receiving any promise to perform from the other

A(n)____________________ contract results when a promise is exchanged for performance.

Which of the following is an essential element of a contract?

A lawsuit for _________________________ is an action in court by the innocent party to force the breaching party to carry out the remainder of the contract according to the precise terms, price and conditions agreed upon.

Choose the one most appropriate answer for each. -the party who makes an offer

For an agreement to be enforceable it must be supported by ____________________ to demonstrate that a bargain has been struck between the parties to the contract.

A real estate contract can be declared void if

A man put up $10,000 as earnest money on a property for sale. The next day, he needed the money back and attempted to cancel his offer. Which of the following is true?

All of the following are essential elements of a contract EXCEPT

A lease is an example of a

An executory contract is a

A unilateral contract results when a promise is exchanged for a promise.

Choose the one most appropriate answer for each. -to cancel a contract and restore the parties involved to their respective positions before the contract was made

Choose the one most appropriate answer for each. -a sum of money called for in a contract that is to be paid if the contract is breached

The agency relationship of a real estate broker with his client is most often established by

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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