WEICHERT REAL ESTATE SCHOOL
CHAPTER 11 QUESTIONS AND
ANSWERS 100% CORRECT
Types of Contracts Brokers Engage In - ANSWER-Listing Agreement, Sales Contract,
Option Agreements and Leases
Contact Law - ANSWER-The general body of law that governs the operations of such
agreements
Contract - ANSWER-A voluntary agreement between legally competent parties to
perform or refrain from performing some legal act, supported by legal consideration
Essential Elements of a Contract - ANSWER-Competent Parties, Offer and Acceptance,
Consideration, Legality of Object
Competent Parties - ANSWER-18 years old or a married minor (voidable until he/she
turns 18)
Offer and Acceptance (Mutual Assent) - ANSWER-Meetings of the minds on each term
of contract, wording of the contract must express agreed upon terms and must be
clearly understood by both parties
Consideration - ANSWER-What the parties promise in the agreement to give or receive
from each other
Forms of consideration - ANSWER-Legal tender, exchange of value, love and affection
(Must be stated in contract and payable in exchange for the deed)
Default / Breach of Contract - ANSWER-Violation of any of the terms or conditions of a
contract without legal excuse
If the seller defaults, the buyer has three alternatives - ANSWER-To rescind or cancel
the contract and recover the earnest money, file suit for an action of specific
performance to force party to perform the contract, sue for compensatory damages
If the buyer defaults, the seller may pursue one of four courses - ANSWER-declare the
contract forfeited (collect liquidated damages), rescind the contract (return all
payments), sue for specific performance
, NJ Statue of Limitations - ANSWER-6 years during which parties to a contract may
bring legal suit to enforce their rights (Contracts, foreclosures, mortgages and cases of
fraud)/ Law suits to recover real property have a ten-year statute of limitations in NJ
NJ allows brokers (or their agents) to complete residential leases and standard
approved sales contracts for.... - ANSWER-one to four family dwellings and vacant
single lots.
NJ brokers (or their agents) may NOT draft - ANSWER-commercial leases, option
agreements, or sales contracts on tracts of vacant land, commercial property, or
industrial property to avoid the unauthorized practice of law
Legality of Object - ANSWER-To be valid and enforceable, a contract must not involve a
purpose that is illegal or against public policy (suing a friend for breaking a "contract" to
help you rob banks)
NJ Statute of Frauds - ANSWER-A contract for the sale of real estate (and any lease for
more than three years) must be in writing and signed in order to be enforceable
What change was made to the NJ Statute of Frauds in 1996? - ANSWER-An oral
contract is enforceable as long as there is "clear and convincing evidence" that buyer
and seller have agreed orally on the real estate to be transferred
A real estate broker's _________________________________________ must be in
writing and ____________________for either a sale or lease transaction, whether the
broker is acting on behalf of the buyer, the seller, the landlord, or the tenant. -
ANSWER-Authorization, signed
Types of Contracts - ANSWER-Express and implied, unilateral or bilateral, executory or
executed and valid, unenforceable, voidable or void
Express and Implied Contracts - ANSWER-Expressed - the parties state the terms and
show their intentions in words (oral or written) (listing agreement between the principal
and the broker)
Implied - agreement of parties is demonstrated by their acts and conduct (getting gas is
an implied contract)
Unilateral or bilateral - ANSWER-Unilateral - One party makes a promise to induce
another party to do something / the second party is not legally obligated to act (offer of a
reward) "I can do this if you will do that"
Bilateral - BOTH parties promise to do something (sales contract)
CHAPTER 11 QUESTIONS AND
ANSWERS 100% CORRECT
Types of Contracts Brokers Engage In - ANSWER-Listing Agreement, Sales Contract,
Option Agreements and Leases
Contact Law - ANSWER-The general body of law that governs the operations of such
agreements
Contract - ANSWER-A voluntary agreement between legally competent parties to
perform or refrain from performing some legal act, supported by legal consideration
Essential Elements of a Contract - ANSWER-Competent Parties, Offer and Acceptance,
Consideration, Legality of Object
Competent Parties - ANSWER-18 years old or a married minor (voidable until he/she
turns 18)
Offer and Acceptance (Mutual Assent) - ANSWER-Meetings of the minds on each term
of contract, wording of the contract must express agreed upon terms and must be
clearly understood by both parties
Consideration - ANSWER-What the parties promise in the agreement to give or receive
from each other
Forms of consideration - ANSWER-Legal tender, exchange of value, love and affection
(Must be stated in contract and payable in exchange for the deed)
Default / Breach of Contract - ANSWER-Violation of any of the terms or conditions of a
contract without legal excuse
If the seller defaults, the buyer has three alternatives - ANSWER-To rescind or cancel
the contract and recover the earnest money, file suit for an action of specific
performance to force party to perform the contract, sue for compensatory damages
If the buyer defaults, the seller may pursue one of four courses - ANSWER-declare the
contract forfeited (collect liquidated damages), rescind the contract (return all
payments), sue for specific performance
, NJ Statue of Limitations - ANSWER-6 years during which parties to a contract may
bring legal suit to enforce their rights (Contracts, foreclosures, mortgages and cases of
fraud)/ Law suits to recover real property have a ten-year statute of limitations in NJ
NJ allows brokers (or their agents) to complete residential leases and standard
approved sales contracts for.... - ANSWER-one to four family dwellings and vacant
single lots.
NJ brokers (or their agents) may NOT draft - ANSWER-commercial leases, option
agreements, or sales contracts on tracts of vacant land, commercial property, or
industrial property to avoid the unauthorized practice of law
Legality of Object - ANSWER-To be valid and enforceable, a contract must not involve a
purpose that is illegal or against public policy (suing a friend for breaking a "contract" to
help you rob banks)
NJ Statute of Frauds - ANSWER-A contract for the sale of real estate (and any lease for
more than three years) must be in writing and signed in order to be enforceable
What change was made to the NJ Statute of Frauds in 1996? - ANSWER-An oral
contract is enforceable as long as there is "clear and convincing evidence" that buyer
and seller have agreed orally on the real estate to be transferred
A real estate broker's _________________________________________ must be in
writing and ____________________for either a sale or lease transaction, whether the
broker is acting on behalf of the buyer, the seller, the landlord, or the tenant. -
ANSWER-Authorization, signed
Types of Contracts - ANSWER-Express and implied, unilateral or bilateral, executory or
executed and valid, unenforceable, voidable or void
Express and Implied Contracts - ANSWER-Expressed - the parties state the terms and
show their intentions in words (oral or written) (listing agreement between the principal
and the broker)
Implied - agreement of parties is demonstrated by their acts and conduct (getting gas is
an implied contract)
Unilateral or bilateral - ANSWER-Unilateral - One party makes a promise to induce
another party to do something / the second party is not legally obligated to act (offer of a
reward) "I can do this if you will do that"
Bilateral - BOTH parties promise to do something (sales contract)
