Oregon Real Estate Exam Questions and Answers (Graded A+)

Contract - ANSWER-*agreement between two or morew competent parties based upon legal consideration that creates duties and obligations that are legally enforceable. 4 elements required for a contract - ANSWER-*Competent Parties *Legal (or lawful) object or purpose *Agreement between the parties (offer & acceptance) *Consideration Valid Contract - ANSWER-Contains all of the essential elements and is binding and enforceable upon both parties to the contract. Voidable Contract - ANSWER-Has all elements and is enforceable but is subject to recission by one of the parties to the contract. voidable when one party has been victimized: was a minor, was misled, didn't agree to the contract voluntarily, later found to lack competancy at time of contract. Void Contract - ANSWER-Is not a contract at all. Has no force or effect in law, will not be enforced in a court. Statute of Limitations - ANSWER-Period of time in which something can be enforced. Laches - ANSWER-The equitable doctrine that bars a party's right to legal action if the party has neglected for an unreasonable length of time to act on his or her rights. Capacity to Contract - ANSWER-Needed for an enforceable contract. Corporate resolution - ANSWER-A document stating that the corporation's board of directors has authorized particular individuals to act on behalf of the corporation. This document is necessary when the corporation opens a cash or margin account Minor - ANSWER-Have contractual ability. A person under the age of 18 who is unmarried. contracts with minors are voidable. Majority - ANSWER-Any persons 18 or older, has a full right to enter into contract. Emancipated - ANSWER-A minot who is under 18 and has a court-issued declaration of emancipation, is on active duty in the armed forces, or is or has been married. Express Contract - ANSWER-A contract created in words, by either written or oral agreement. Implied Contract - ANSWER-A contract that result from the actions of the parties involved, rather than from words. Statute of Frauds - ANSWER-Purpose: prevent perjury and dishonest conduct in proving the existenve and terms of certain important contracts. Parol Evidence Rule - ANSWER-Requires that evidence of the agreement cannot be recieved other than in writing. Offer - ANSWER-Definite, certain and clearly understandable, and communicated to the offeree. Misrepre