Real Estate - Contract Review Questions with Complete Solutions Latest Update 2024
A contract created by actions rather than oral or written words is called - Answers an implied contract
A contract which has no force or effect in law is - Answers void and unenforceable
What is not necessary for a contract to be valid? - Answers Notarization
All contracts for the sale of real property must - Answers be in writing
A contract for sale of real estate must be signed by - Answers the seller and buyer
A voidable contract is - Answers valid until action is taken to make it void
A valid real estate sales contract must - Answers accurate description/signed by buyer and seller/
competent parties
consideration is... - Answers something of value and mutual promises
Legality of Object is... - Answers The requirement that a contract must not be for an illegal purpose or
against public policy
Executed - Answers when the parties to a contract have fully performed the terms, the contract may be
called -
A lease made with a lessor who is under legal age of minority ( who is a minor) - Answers voidable by
lessor
Liquidated damages - Answers an amount predetermined by the parties as a total compensation a party
should receive in the event that the other party breaches a specified part
various reasons - Answers A contract could be rescinded due to
which of the following is necessary to establish misrepresentation? - Answers assertion in writing & the
assertion was false.
Stating an opinion that is not fact is... - Answers Puffing
Coercion and Duress were applied in a contract...which means - Answers voidable at option of person it
was applied upon
Buyer Beware is the definition of which of the following terms - Answers Caveat Emptor
An Oral lease is not enforceable due to the - Answers Statue of Frauds
Suit for Specific Performance - Answers refusing to complete sale because of inflation or other outside
things, even if written contract. this may be a remedy
Waiver in legal language is best defined as - Answers a unilateral act with legal consequences
,Enforceable - Answers a contract of sale which is conditional upon the buyers ability to obtain leases
Which of the following is NOT an essential element of a valid real estate contract?
Consideration
Cash downpayment
Competent parties
Offer and acceptance - Answers Cash Down payment
A contract created to pursue an illegal objective is - Answers Void
If an offer to purchase is not accepted in its entirety, it will still bind the
I. offeror.
II. offeree. - Answers Neither
Which of the parties to a contract for the sale of land has the right to sue for specific performance when
the other party defaults?
I. Buyer.
II. Seller. - Answers II. Seller.
I and II.
A voidable contract is a contract which is
I. legally insufficient and not recognized by law.
, II. not binding on either party. - Answers Neither
Which one of the following statements concerning the assignment of contracts is correct?
I. Listing agreements are assignable without the principal's consent.
II. Unless prohibited in the contract, a land sales contract may be assigned by the buyer. - Answers II
only.
II. Unless prohibited in the contract, a land sales contract may be assigned by the buyer.
The term waiver, as used in a legal contract, is best defined as
estoppel.
the mutual exchange of privileges.
detrimental justification.
to voluntarily give up or surrender a right. - Answers to voluntarily give up or surrender a right.
"Time is of the essence" is a concept of real estate law concerning
delivery of title.
performance.
conditions of record.
A contract created by actions rather than oral or written words is called - Answers an implied contract
A contract which has no force or effect in law is - Answers void and unenforceable
What is not necessary for a contract to be valid? - Answers Notarization
All contracts for the sale of real property must - Answers be in writing
A contract for sale of real estate must be signed by - Answers the seller and buyer
A voidable contract is - Answers valid until action is taken to make it void
A valid real estate sales contract must - Answers accurate description/signed by buyer and seller/
competent parties
consideration is... - Answers something of value and mutual promises
Legality of Object is... - Answers The requirement that a contract must not be for an illegal purpose or
against public policy
Executed - Answers when the parties to a contract have fully performed the terms, the contract may be
called -
A lease made with a lessor who is under legal age of minority ( who is a minor) - Answers voidable by
lessor
Liquidated damages - Answers an amount predetermined by the parties as a total compensation a party
should receive in the event that the other party breaches a specified part
various reasons - Answers A contract could be rescinded due to
which of the following is necessary to establish misrepresentation? - Answers assertion in writing & the
assertion was false.
Stating an opinion that is not fact is... - Answers Puffing
Coercion and Duress were applied in a contract...which means - Answers voidable at option of person it
was applied upon
Buyer Beware is the definition of which of the following terms - Answers Caveat Emptor
An Oral lease is not enforceable due to the - Answers Statue of Frauds
Suit for Specific Performance - Answers refusing to complete sale because of inflation or other outside
things, even if written contract. this may be a remedy
Waiver in legal language is best defined as - Answers a unilateral act with legal consequences
,Enforceable - Answers a contract of sale which is conditional upon the buyers ability to obtain leases
Which of the following is NOT an essential element of a valid real estate contract?
Consideration
Cash downpayment
Competent parties
Offer and acceptance - Answers Cash Down payment
A contract created to pursue an illegal objective is - Answers Void
If an offer to purchase is not accepted in its entirety, it will still bind the
I. offeror.
II. offeree. - Answers Neither
Which of the parties to a contract for the sale of land has the right to sue for specific performance when
the other party defaults?
I. Buyer.
II. Seller. - Answers II. Seller.
I and II.
A voidable contract is a contract which is
I. legally insufficient and not recognized by law.
, II. not binding on either party. - Answers Neither
Which one of the following statements concerning the assignment of contracts is correct?
I. Listing agreements are assignable without the principal's consent.
II. Unless prohibited in the contract, a land sales contract may be assigned by the buyer. - Answers II
only.
II. Unless prohibited in the contract, a land sales contract may be assigned by the buyer.
The term waiver, as used in a legal contract, is best defined as
estoppel.
the mutual exchange of privileges.
detrimental justification.
to voluntarily give up or surrender a right. - Answers to voluntarily give up or surrender a right.
"Time is of the essence" is a concept of real estate law concerning
delivery of title.
performance.
conditions of record.
