Ch 4 Pearson VUE Exam Questions and Answers 100% Pass

Ch 4 Pearson VUE Exam Questions and Answers 100% Pass 1. Mutual assent to a real estate contract is indicated by (page 98) A. attestation. B. offer and acceptance. C. acknowledgment. D. seals. - Answer- B ( This indicates a meeting of the minds.) 2. An example of an executory oral contract that is enforceable would be a (page 99) A. lease for six months starting in 6 months. B. sale of a lot for less than $500. C. lease for two weeks starting in 12 months. D. sale of drapes for $600. - Answer- A (A lease for one year or less that can be fully performed within one year can be oral.) 3. A contract of adhesion is a contract that (page 105) A. is impossible to perform. B. has no offeror. C. is offered as "take it or leave it." D. cannot be breached. - Answer- C (In a case of ambiguity, contracts of adhesion are interpreted against the party drafting it.) 4. After an offer is accepted, the seller finds out that the broker was the undisclosed agent for the buyer as well as the agent for the seller. What are the seller's rights? (page 106) A. The seller can withdraw without obligation to broker or buyer. B. The seller can withdraw but is subject to liquidated damages. C. The seller can withdraw only with concurrence of the buyer. D. The seller is subject to specific performance if he or she refuses to sell. - Answer- A (Because of the undisclosed agency, the seller can withdraw without obligation and the broker could be subject to disciplinary action. The seller would also be entitled to the return of any commission paid.) 5. A voidable contract could be described as (page 100) A. valid unless voided. B. void unless validated. C. illegal. D. unenforceable by either party. - Answer- A (Only one party can void it at that party's option.) 6. A remedy that puts the parties back in the positions they were prior to entering into a contract would be (page 104) A. specific performance. B. waiver. C. rescission. D. accord and satisfaction. - Answer- C (Waiver, however, leaves them as they are.) 7. By agreement, one party to a contract was discharged and another party took her place, an act known as a(n) (page 104) A. rescission. B. reformation. C. novation. D. accord and satisfaction. - Answer- C (This is a substitution of parties to a contract or of contracts.) 8. Which of the following would be regarded as a customer of a broker? (page 106) A. A property owner under an open sale listing B. A property owner under an exclusive listing C. A buyer under an exclusive buyer listing contract D. A buyer who is not represented by an agent - Answer- D (The others are clients with agency duties.) 9. In an assignment of a contract (page 105) A. the old party is relieved of all contractual obligation. B. the assignor remains primarily liable for the contract. C. the assignee assumes contractual liability. D. a new agreement is substituted for the old agreement. - Answer- C (The assignor remains secondarily liable.) 10. Lead paint hazards must be disclosed to a buyer of residential property built before (page 116) A. 1966. B. 1978. c. 1992. D. 2000. - Answer- B (The Protect Your Family From Lead Paint booklet must be provided to buyers and lessees.) 11. The borrower must sign a notice entitled ''The Importance of a Home Inspection" when purchasing (page 118) A. any property. B. 1-4 residential units. C. a home with FHA financing. D. flood disaster insurance. - Answer- C (Also for sale of HUD owned property. Applies to 1-4 residential units.) 12. M and N agreed that M would buy N's lot for $68,000 with the settlement scheduled for next Thursday. What type of contract was made? (pages 97-98) A. Bilateral, express, and executory B. Implied. express, and executed C. Unilateral, express, and executory D. Bilateral, implied, and executed - Answer- A (Mutual promise that was expressed but not yet performe