Champions - Law of Contracts UPDATED
ACTUAL Questions and CORRECT
Answers
In a residential lease with a "right of first refusal" provision: - CORRECT ANSWER -The
tenant has the right to match or better any offer the landlord receives to prevent the property
from being sold to someone else
The four ECONOMIC characteristics of land are: - CORRECT ANSWER -1) Scarcity
2) Modification
3) Situs
4) Fixity
GIVES LAND ITS VALUE
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to
exceed: - CORRECT ANSWER -90 days
A contract that is said to lack mutuality because only one party is obligated to perform is
a________ contract. - CORRECT ANSWER -Unilateral Contract
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the category of
________. - CORRECT ANSWER -Services
The five essential elements of a valid and enforceable contract are: - CORRECT
ANSWER -COLIC
1. Component parties
2. Offer and acceptance
3. Legal purpose
, 4. In writing
5. Consideration
________ law is a body of law based on "common sense" and local custom. - CORRECT
ANSWER -Common Law
A(n) ________ is a business venture that is owned by one individual. - CORRECT
ANSWER -Sole proprietorship
A(n) __________ is an agreement between two or more parties to do something or to refrain
from doing something. - CORRECT ANSWER -Contract
The fact that the value is affected by manmade changes to the land. - CORRECT
ANSWER -Modifications
Jake (Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's personal residence.
In the contract, Jake promised to deliver a seller's disclosure of property condition within 5 days
of the effective date of the contract. Jake never delivered the disclosure as promised. Which of
the following statements is true? - CORRECT ANSWER -Sarah has the right to terminate
the contract and receive a refund of earnest money prior to closing
Owners within a __________________ do not actually own a specific unit. The entire
cooperative complex is
owned by a corporation. Those who wish to live in the cooperative buy shares in the corporation,
and
receive a proprietary lease on the unit. When listing and selling cooperatives, a real estate license
is often
not required because the sale of a cooperative is the sale of stock rather than real property. -
CORRECT ANSWER -Cooperative
________ is the right of the government to regulate and control the way land is used. -
CORRECT ANSWER -Police Power
ACTUAL Questions and CORRECT
Answers
In a residential lease with a "right of first refusal" provision: - CORRECT ANSWER -The
tenant has the right to match or better any offer the landlord receives to prevent the property
from being sold to someone else
The four ECONOMIC characteristics of land are: - CORRECT ANSWER -1) Scarcity
2) Modification
3) Situs
4) Fixity
GIVES LAND ITS VALUE
The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to
exceed: - CORRECT ANSWER -90 days
A contract that is said to lack mutuality because only one party is obligated to perform is
a________ contract. - CORRECT ANSWER -Unilateral Contract
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the category of
________. - CORRECT ANSWER -Services
The five essential elements of a valid and enforceable contract are: - CORRECT
ANSWER -COLIC
1. Component parties
2. Offer and acceptance
3. Legal purpose
, 4. In writing
5. Consideration
________ law is a body of law based on "common sense" and local custom. - CORRECT
ANSWER -Common Law
A(n) ________ is a business venture that is owned by one individual. - CORRECT
ANSWER -Sole proprietorship
A(n) __________ is an agreement between two or more parties to do something or to refrain
from doing something. - CORRECT ANSWER -Contract
The fact that the value is affected by manmade changes to the land. - CORRECT
ANSWER -Modifications
Jake (Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's personal residence.
In the contract, Jake promised to deliver a seller's disclosure of property condition within 5 days
of the effective date of the contract. Jake never delivered the disclosure as promised. Which of
the following statements is true? - CORRECT ANSWER -Sarah has the right to terminate
the contract and receive a refund of earnest money prior to closing
Owners within a __________________ do not actually own a specific unit. The entire
cooperative complex is
owned by a corporation. Those who wish to live in the cooperative buy shares in the corporation,
and
receive a proprietary lease on the unit. When listing and selling cooperatives, a real estate license
is often
not required because the sale of a cooperative is the sale of stock rather than real property. -
CORRECT ANSWER -Cooperative
________ is the right of the government to regulate and control the way land is used. -
CORRECT ANSWER -Police Power
