ROCKWELL LESSON 6: Contract Law
Which of these is a legal action that compels the party who has breached the contract to
perform as agreed?
a. recission
b. damages
c. specific performance
d. full performance - CORRECT ANSWER-Specific performance
Consideration is: - CORRECT ANSWER-Something of value exchanged by the
contracting parties.
If the optionee fails to exercise the option within the specified time:
a. the option is automatically extended for a similar period
b. the option expires automatically
c. the optionor can sue for breach of contract
d. the optionor is entitled to specific performance - CORRECT ANSWER-The option
expires automatically
Which of these is one of the four basic elements needed to make a contract valid and
legally binding?
a. a unilateral promise
b. a counteroffer
c. mutual consent
d. voidability - CORRECT ANSWER-Mutual consent
aka offer/acceptance
A contract is voidable if one of the parties:
a. is a minor
b. used misrepresentation to persuade the other to enter into it
c. has the right to rescind it
d. all of the above - CORRECT ANSWER-All of the above
A contract with an unlawful purpose is:
a. unenforceable
b. valid
, c. void
d. voidable - CORRECT ANSWER-Void
In Washington, to have legal capacity to enter into a contract, a person must be:
a. at least 21 years old
b. able to read and to sign his or her name
c. registered with the superior court
d. mentally competent - CORRECT ANSWER-Mentally competent
A contract is bilateral if:
a. each party makes a promise so that both parties are legally obligated to perform
b. only one of the parties is legally obligated to perform
c. it has been put into words (spoken or written)
d. it is in the process of being performed - CORRECT ANSWER-Each party makes a
promise, so that both parties are legally obligated tor perform.
With a bilateral contact, each party is legally obligated to perform a promise.
The Ms agree to purchase a property from the Js for $150,000. Several days later, the
Ks approach the Ms and offer them $6,000 more for the property. The contract is silent
regarding assignment. Which of following is true?
a. absent an assignment provision, the Ms cannot assign their contract; they must wait
for the transaction to close
b. the Ms may assign the contract to the Ks
c. the Js may terminate the contract and form a new one with the Ks
d. the law prohibits assignment in real estate transactions - CORRECT ANSWER-The
Ms may assign the contract to the Ks
An option on real estate is a:
a. deposit
b. consideration
c. contract
d. endorsement - CORRECT ANSWER-Contract
contract that creates a right to buy for a price within a set period of time
A statute of limitations:
a. limits the amount of consideration a party to a contract can be required to pay
b. limits the number of contracts a person can enter into in one year
c. sets a deadline for filing a lawsuit
Which of these is a legal action that compels the party who has breached the contract to
perform as agreed?
a. recission
b. damages
c. specific performance
d. full performance - CORRECT ANSWER-Specific performance
Consideration is: - CORRECT ANSWER-Something of value exchanged by the
contracting parties.
If the optionee fails to exercise the option within the specified time:
a. the option is automatically extended for a similar period
b. the option expires automatically
c. the optionor can sue for breach of contract
d. the optionor is entitled to specific performance - CORRECT ANSWER-The option
expires automatically
Which of these is one of the four basic elements needed to make a contract valid and
legally binding?
a. a unilateral promise
b. a counteroffer
c. mutual consent
d. voidability - CORRECT ANSWER-Mutual consent
aka offer/acceptance
A contract is voidable if one of the parties:
a. is a minor
b. used misrepresentation to persuade the other to enter into it
c. has the right to rescind it
d. all of the above - CORRECT ANSWER-All of the above
A contract with an unlawful purpose is:
a. unenforceable
b. valid
, c. void
d. voidable - CORRECT ANSWER-Void
In Washington, to have legal capacity to enter into a contract, a person must be:
a. at least 21 years old
b. able to read and to sign his or her name
c. registered with the superior court
d. mentally competent - CORRECT ANSWER-Mentally competent
A contract is bilateral if:
a. each party makes a promise so that both parties are legally obligated to perform
b. only one of the parties is legally obligated to perform
c. it has been put into words (spoken or written)
d. it is in the process of being performed - CORRECT ANSWER-Each party makes a
promise, so that both parties are legally obligated tor perform.
With a bilateral contact, each party is legally obligated to perform a promise.
The Ms agree to purchase a property from the Js for $150,000. Several days later, the
Ks approach the Ms and offer them $6,000 more for the property. The contract is silent
regarding assignment. Which of following is true?
a. absent an assignment provision, the Ms cannot assign their contract; they must wait
for the transaction to close
b. the Ms may assign the contract to the Ks
c. the Js may terminate the contract and form a new one with the Ks
d. the law prohibits assignment in real estate transactions - CORRECT ANSWER-The
Ms may assign the contract to the Ks
An option on real estate is a:
a. deposit
b. consideration
c. contract
d. endorsement - CORRECT ANSWER-Contract
contract that creates a right to buy for a price within a set period of time
A statute of limitations:
a. limits the amount of consideration a party to a contract can be required to pay
b. limits the number of contracts a person can enter into in one year
c. sets a deadline for filing a lawsuit
