What is the status of the contract Connie and Dennis signed?
What is another reason a contract may be voidable?
A party is suffering from a mental illness.
The contract was made with intent to fraud.
One party was threatened or coerced into signing against that party's will.
Has no legal force or effect because it lacks some or all of the essential elements of a contract
A forged name was used in the contract
Meets all essential elements that make it legally sufficient, or enforceable, and is binding in a court of law
A deed executed by a minor
A deed executed by someone who was mentally impaired at the time
Appears on the surface to be valid, but may be rescinded or disaffirmed by one or both parties based on some legal principle
In a unilateral contract, both parties promise to do something—one promise is given in exchange for another.
MOST real estate contracts are implied contracts.
Transfer of rights or duties under a contract
The right of a buyer to sue a seller who breaches a real estate sales contract
Substitution of a new contract for an existing contract
Substitution of a new contract for an existing contract is called novation.
Rescission returns the parties in a contract to their original position, whereas cancellation terminates a contract without a return to the original position.
A change or modification to the existing content of a contract
Used to change existing words or provisions in a preprinted contract form
Includes the original contract’s provisions by reference
A provision added to an existing contract that may change or be an addition to the content of the original
In some states, instead of preparing a complete sales contract, real estate professionals may prepare a shorter document known as a briefer.
After both a buyer and a seller have executed a sales contract, the buyer acquires an interest in the land. This interest is called equitable title.
The buyer has made an offer that the seller has accepted, and proper notice has been given to the buyer of the seller's acceptance. The offer is now considered
an executory contract.
Which of the following is FALSE about assignments?
All contracts must allow assignments.
A legally enforceable agreement in which two parties promise to do something for each other is classified as
a bilateral contract.
The purchaser of real estate under an installment contract
has only an equitable interest in the property's title.
The transfer of rights or duties under a contract to a third party is called
The property owner has given a potential buyer the right to buy the property at a set price for a set period of time; this is
In a preprinted sales contract, several words were crossed out or inserted by the parties. To eliminate future controversy as to whether the changes were made before or after the contract was signed, the usual procedure is to
have both parties initial or sign in the margin near each change.
A buyer and a seller enter a contract for the sale of a three-bedroom residential property. Shortly after the contract is in place, the buyer has an inspection done. As a result of the inspection, the buyer wants the seller to fix the fence and replace the garage door opener. The seller refuses. How should the parties proceed?
The contract should provide the buyer's remedy if the seller refused to make indicated repairs.
Under the statute of frauds, all contracts for the sale of real estate must be
in writing to be enforceable.
The principal reason for this statute is to prevent perjury & fraudulent proof of fictitious oral contract.
A contract for the sale of real estate that does not state the consideration and provides no basis on which the consideration could be determined is considered
A buyer asks a court to enforce the provisions of a contract by bringing
a suit for specific performance.
A buyer purchased a home under a land contract. In this form of seller-carry lending, the seller
holds the deed to the home until final payment.
A legally enforceable agreement under which both parties promise to do something for each other is called
a bilateral contract.
An option to purchase binds which of the following parties?
All of the following are essential to the formation of a contract EXCEPT
A buyer and a seller enter into a real estate sales contract. Under the contract's terms, the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract do the buyer and seller have?
Land sales contract
If a buyer defaults on a purchase agreement and the seller keeps the buyer's earnest money, which of the following remedies has the seller elected?
Earnest money checks should be deposited
when an accepted offer becomes a contract.
A special feature of a residential lease option is that it may provide for
a portion of lease payments to be applied to the purchase price if the option is exercised.
A buyer and a seller agree on a purchase price of $300,000 for a house. The contract contains a clause stating that "time is of the essence." Which statement is TRUE?
If the closing date passes and no closing takes place, the contract may be rescinded by the party who was ready to settle on the scheduled date.
A contract that has been fully performed is
A person approaches an owner and says, "I'd like to buy your house." The owner says, "Sure," and they agree on a price. What kind of contract is this?
The buyer has defaulted on a purchase contract, and the seller's only remedy is to keep the buyer's earnest money. In this case, the seller's remedy is known as
The document that can be used to begin negotiations between the parties is
the letter of intent.
In the period after an offer to purchase real estate is accepted and the sale is closed, the buyer acquires an interest in the property that is called
A contract is said to be executed when it includes
the signatures of the parties.
The listing broker and the seller know that the foundation of the seller's house is unsafe. If they do not inform the buyer of this condition, the contract to purchase the property would be
voidable by the buyer.
A real estate professional has found a buyer for a seller's home. The buyer has indicated in writing a willingness to buy the property for $1,000 less than the asking price and has provided an earnest money check for $5,000. The seller is out of town for the weekend, and the real estate professional has been unable to inform the seller of the signed document. At this point, there is
A prospective buyer submits an offer to purchase a residential property. All of the following circumstances would automatically terminate the offer EXCEPT
the seller received a better offer from another buyer.
Mutual rescission is BEST defined as
the dissolution of a contract with the return of all funds or things of value to both sides.
An example of specific performance for breaching a real property purchase contract would be
a court action to force compliance with the contract.
A buyer under an executory contract has found numerous inspection issues the seller is unwilling to repair. The seller and the buyer agree to terminate the contract with all things of value returned to each party. This is known as
The statute of limitations
is the time during which parties to a contract may bring a legal action to enforce their rights.