Champions School of Promulgated Forms Exam Questions and Answers 100% Correct.

COLIC - ANSWER-Elements of a Valid & Enforceable Contract: 1. Competent Parties 2. Offer & Accept (Mutual Consent) 3. Legal Purpose 4. In Writing 5. Consideration Void Contract - ANSWER-Invalid from the beginning Voidable Contract - ANSWER-Cannot be enforced Earnest Money - ANSWER-Earnest Money is NEGOTIABLE & is NOT consideration & is not a requirement of a valid contract. Earnest money is a deposit paid by buyer, usually 1% of purchase price. Consideration - ANSWER-The purchase or sales price of the property. Executory Contract - ANSWER-From the effective date thru the closing date, a contract that has been agreed to, signed by & communicated to offeror, and is now binding to all parties. Option - ANSWER-A Unilateral Contract, that is Between a buyer & a seller, and only requires one party, usually the seller, to perform the sell of property, if the buyer chooses to buy. It lacks mutuality. Time is of the Essence - ANSWER-A contract where milestones must be performed by day stipulated. Number of Days are strictly interpreted. Amendments - ANSWER-Change in contract during Executory Period: 1. Closing date change 2. Price changes (sales, down payment or amount financed). 3. Repairs seller agrees to perform 4. Removal or waiver of contingencies Closing Date - ANSWER-"On or before" date that can be changed, usually extended due to repairs or financing, with an amendment. Change in Sales Price - ANSWER-Usually requires an amendment because the appraisal came in below sales price.