GA AUCTION EXAMS SCRIPT UPDATED QUESTIONS
AND ANSWERS GRADED A+
✔✔A sale advertised as "absolute auction" means - ✔✔Each item must be sold to high
bidder, bidder may retract their bid any time prior to the auctioneer saying sold
✔✔At an absolute auction, the only legal way to protect the price of the property is to
have a by-bidder to bid the price up.
T or F? - ✔✔False
✔✔Absolute Auction - ✔✔If you advertise an auction that "everything will be sold to the
bidder regardless of the price."
✔✔Contract - ✔✔Legal agreement between competent parties
✔✔Executed contract - ✔✔A signed contract
✔✔Negotiation of a contract - ✔✔Must be the intent to create a legal obligation, terms
must be definite and complete, must address price, property description, and delivery,
must include parties to the contract
✔✔The Statue of Frauds requires that auction contracts must be written.
T or F? - ✔✔True
✔✔Common law requires that auction contracts must be written.
T or F? - ✔✔False
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
, ✔✔Acceptance of an offer is one of the essential elements if a valid contract. When
your bidder rejects his bid prior to completing the sale, the backup bidder is obligated to
accept the last bid received.
T or F? - ✔✔False
✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
✔✔A void able contract is an example of making a contract with a minor, which can be
made void at the option of the minor, but not made by the responsible party of the
contract.
T or F - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
AND ANSWERS GRADED A+
✔✔A sale advertised as "absolute auction" means - ✔✔Each item must be sold to high
bidder, bidder may retract their bid any time prior to the auctioneer saying sold
✔✔At an absolute auction, the only legal way to protect the price of the property is to
have a by-bidder to bid the price up.
T or F? - ✔✔False
✔✔Absolute Auction - ✔✔If you advertise an auction that "everything will be sold to the
bidder regardless of the price."
✔✔Contract - ✔✔Legal agreement between competent parties
✔✔Executed contract - ✔✔A signed contract
✔✔Negotiation of a contract - ✔✔Must be the intent to create a legal obligation, terms
must be definite and complete, must address price, property description, and delivery,
must include parties to the contract
✔✔The Statue of Frauds requires that auction contracts must be written.
T or F? - ✔✔True
✔✔Common law requires that auction contracts must be written.
T or F? - ✔✔False
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
, ✔✔Acceptance of an offer is one of the essential elements if a valid contract. When
your bidder rejects his bid prior to completing the sale, the backup bidder is obligated to
accept the last bid received.
T or F? - ✔✔False
✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
✔✔A void able contract is an example of making a contract with a minor, which can be
made void at the option of the minor, but not made by the responsible party of the
contract.
T or F - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
