Contract Law Exam Questions and Correct Answers

Contract Law Exam Questions and Correct Answers An agreement between competent parties upon legal consideration creating legally enforceable duties and obligations' is a definition of - ANSWER contract To comply with the Statute of Frauds, all real estate contracts must be written. acknowledged. recorded. - ANSWER 1 only Which one of the following statements concerning the assignment of contracts is correct? Property management agreements are assignable without the client's consent. Unless prohibited in the contract, a lease may be assigned by the lessee. - ANSWER 2 only Every valid contract must meet all of the following requirements EXCEPT legally competent parties to the agreement. a consideration clause expressed in monetary terms. an offer and acceptance mutually agreed upon. a legitimate purpose. - ANSWER a consideration clause expressed in monetary terms. Which of the following is the best description of a contract? An agreement between competent parties, giving each the right to cancel the contract provided legal notice is given. An executed document in which all essential elements have been fulfilled. An agreement whereby all parties to the agreement have contractual ability. An agreement between competent parties and based upon legal consideration that creates legally enforceable duties and obligations. - ANSWER An agreement between competent parties and based upon legal consideration that creates legally enforceable duties and obligations. It is said that a valid contract must have legality of object. Which of the following best describes 'legality of object'? An agreement between competent parties that is legally enforceable. All parties are of legal age and agree upon the legal consideration to be paid. Either party has the legal right to cancel the contract, provided legal notice is given. The contract must not be for an illegal purpose or against public policy. - ANSWER The contract must not be for an illegal purpose or against public policy. The requirement that a contract must not be for an illegal purpose or against public policy is referred to as: - ANSWER legality of object. Which of the following statutes or act creates the need for a contract to lease for a year or more to be in writing? The Recording Act The Statute of Descent The Statute of Frauds The Statute of Limitations - ANSWER The Statute of Frauds