ESTATE UPDATED ACTUAL Exam
Questions and CORRECT Answers
Contract - CORRECT ANSWER - Agreement to do or not to do a certain thing
Competence - CORRECT ANSWER - Requires parties to be over 18, of sound mind, and
not deprived of civil rights
Minor - CORRECT ANSWER - Persons under the age of 18
Offer - CORRECT ANSWER - Proposal indicating present intent to be bound by a
contract
Acceptance - CORRECT ANSWER - Unconditional agreement to the terms of an offer by
the offeree
Counter offer - CORRECT ANSWER - Response to an offer that changes some terms
Mutual consent - CORRECT ANSWER - Combines offer and acceptance in an agreement
Unilateral contract - CORRECT ANSWER - Offeror bargains for an act as acceptance
Bilateral contract - CORRECT ANSWER - Promises exchanged by each party constitute
consideration
Lapse of time - CORRECT ANSWER - Offer termination due to offeree's failure to
respond
, Consideration - CORRECT ANSWER - Benefit conferred upon the promisor in a contract
Mailbox rule - CORRECT ANSWER - Acceptance upon deposit in the US mail
Parole evidence - CORRECT ANSWER - Oral statements merged into a written
agreement
Condition subsequent - CORRECT ANSWER - Event excusing one party from further
obligations
Condition precedent - CORRECT ANSWER - Must happen before one party is obligated
to perform
Liquidated damages - CORRECT ANSWER - Agreed specific amount for breaching the
contract
Mutual rescission - CORRECT ANSWER - All parties agree to cancel the contract
Breach - CORRECT ANSWER - Failure to comply with contractual obligations
Statute of limitations - CORRECT ANSWER - Time limit to file a lawsuit
Laches - CORRECT ANSWER - Flexible time limit to seek an equitable remedy
Contract - CORRECT ANSWER - Legally binding agreement enforceable by law between
parties
Offer and Acceptance - CORRECT ANSWER - Process of proposing and accepting terms
to form a contract