MGRADES EXAMS
Promulgated Contract Forms - Champions
school of real estate UPDATED ACTUAL
Exam Questions and CORRECT Answers
mutual consent - CORRECT ANSWER - a "meeting of the minds"
Unilateral Contract - CORRECT ANSWER - A contract in which only one party Is
obligated to perform. one sided
Consideration - CORRECT ANSWER - something given in exchange for a promise
Option - CORRECT ANSWER - an agreement between a buyer and seller giving the
buyer the right to purchase a property at a preset price for a given period of time
Unenforceable Contract - CORRECT ANSWER - a contract that cannot be enforced due
to some flaw or other issue in the contract. strictly enforced
valid contract - CORRECT ANSWER - is one that meets all of the requirements of law
void contract - CORRECT ANSWER - invalid from the beginning, and has no effect on
the parties. A contract to perform an illegal act
voidable contract - CORRECT ANSWER - one that cannot be enforced against one or
more of the parties
What are the 5 essential elements that must exist for a contract to be considered valid and
enforceable - CORRECT ANSWER - Competent Parties
Offer and acceptance (mutual consent)
Legal Purpose
, MGRADES EXAMS
In writing
Consideration
Most contracts entered into with minors are ________________ at the option of the minor -
CORRECT ANSWER - voidable
executory contract - CORRECT ANSWER - contract that is binding on the parties, with
one or more of the parties having contractual duties that have not yet been performed. (40-60
days from the effective date to closing)
bilateral contract - CORRECT ANSWER - contract of sale between a buyer and seller
where both made promises; therefore, both parties have duties to perform. two sided
option - CORRECT ANSWER - agreement between a buyer and seller or landlord and
tenant
Amendments - CORRECT ANSWER - means change. changes to closing date, sales price,
down payment and/or amount financed, repairs or removal or waiver of contingencies
Addenda - CORRECT ANSWER - means to further explain. is an attachment that adds or
further describes the rights and duties of the parties
assignment - CORRECT ANSWER - of a contract transfers all of the rights related to the
contract to another party
novation - CORRECT ANSWER - occurs when a new contract is substituted for an
existing one. when a contract has been marked up with many changes and replaced with a clean
copy (must terminate contract #1)
doctrine of laches - CORRECT ANSWER - failure to file suit within the time allowed will
result in the party losing his or her rights under the contract
Promulgated Contract Forms - Champions
school of real estate UPDATED ACTUAL
Exam Questions and CORRECT Answers
mutual consent - CORRECT ANSWER - a "meeting of the minds"
Unilateral Contract - CORRECT ANSWER - A contract in which only one party Is
obligated to perform. one sided
Consideration - CORRECT ANSWER - something given in exchange for a promise
Option - CORRECT ANSWER - an agreement between a buyer and seller giving the
buyer the right to purchase a property at a preset price for a given period of time
Unenforceable Contract - CORRECT ANSWER - a contract that cannot be enforced due
to some flaw or other issue in the contract. strictly enforced
valid contract - CORRECT ANSWER - is one that meets all of the requirements of law
void contract - CORRECT ANSWER - invalid from the beginning, and has no effect on
the parties. A contract to perform an illegal act
voidable contract - CORRECT ANSWER - one that cannot be enforced against one or
more of the parties
What are the 5 essential elements that must exist for a contract to be considered valid and
enforceable - CORRECT ANSWER - Competent Parties
Offer and acceptance (mutual consent)
Legal Purpose
, MGRADES EXAMS
In writing
Consideration
Most contracts entered into with minors are ________________ at the option of the minor -
CORRECT ANSWER - voidable
executory contract - CORRECT ANSWER - contract that is binding on the parties, with
one or more of the parties having contractual duties that have not yet been performed. (40-60
days from the effective date to closing)
bilateral contract - CORRECT ANSWER - contract of sale between a buyer and seller
where both made promises; therefore, both parties have duties to perform. two sided
option - CORRECT ANSWER - agreement between a buyer and seller or landlord and
tenant
Amendments - CORRECT ANSWER - means change. changes to closing date, sales price,
down payment and/or amount financed, repairs or removal or waiver of contingencies
Addenda - CORRECT ANSWER - means to further explain. is an attachment that adds or
further describes the rights and duties of the parties
assignment - CORRECT ANSWER - of a contract transfers all of the rights related to the
contract to another party
novation - CORRECT ANSWER - occurs when a new contract is substituted for an
existing one. when a contract has been marked up with many changes and replaced with a clean
copy (must terminate contract #1)
doctrine of laches - CORRECT ANSWER - failure to file suit within the time allowed will
result in the party losing his or her rights under the contract
