Exam Smart - Contracts
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1. A seller and buyer enter into a sales contract on a B » follow through with the
property. The seller breaches the agreement causing original contract
the buyer to sue for specific performance. If the buyer
wins this lawsuit, the seller will have to: Specific performance is
court action to force com-
A » pay damages pletion. If the court orders
B » follow through with the original contract this, the seller must com-
C » return the earnest money to the buyer plete the original agree-
D » rescind the contract ment.
2. A seller and buyer have agreed to a sales contract. C » File for a writ of execu-
The buyer backs out of the agreement. Which of the tion
following could the seller NOT do?
A writ of execution is typical-
A » Sue for specific performance ly where the court orders a
B » Rescind the agreement sheriff to seize property and
C » File for a writ of execution sell it to satisfy a judgment.
D » Sue for compensatory damages
3. When a change is needed in a contract, the best way C » amendment
to accomplish this would be with a(n):
An amendment is used to
A » verbal agreement change an item in a con-
B » addendum tract.
C » amendment
D » new contract
4. A buyer and seller negotiated a sale whereby the D » Sue the seller for specif-
seller was to include all the kitchen appliances. Upon ic performance
moving in, the buyer discovered that the seller had
taken all the kitchen appliances. What would be the Specific performance is
buyer's best remedy? court action to force com-
pletion of a contract. This
, Exam Smart - Contracts
Study online at https://quizlet.com/_c0gqut
A » Declare the contract invalid would be the buyer`s best
B » The buyer is out of luck as the buyer negotiated remedy. (
this himself
C » Sue the seller for partial performance
D » Sue the seller for specific performance
5. A good example of a unilateral contract would be B » option contract
a(n):
An option contract is a one
A » sales contract way promise and is there-
B » option contract fore a unilateral contract.
C » listing contract
D » lease contract
6. R made a promise to sell the property to T. T, however, B » This is a unilateral con-
was only obliged to purchase the property if a certain tract where T does not have
condition was met. Which of the following statements to perform
would be true?
Since only R was definite-
A » This is a unilateral contract where R does not have ly making a promise, this
to perform was a uni-lateral contract -
B » This is a unilateral contract where T does not have T was the one who does not
to perform have to perform if a condi-
C » This is a bilateral contract and would be binding on tion was not met.
both parties
D » This is a non-enforceable agreement
7. A seller told a broker, "If you find me a buyer, I'll A » expressed
pay you a commission. However, I don't want to sign
a formal agreement." This type of agency would be An expressed agency is cre-
classified as an: ated, either orally or in writ-
ing, by a principal authoriz-
A » expressed
, Exam Smart - Contracts
Study online at https://quizlet.com/_c0gqut
B » implied ing an agent to act on their
C » executory behalf.
D » executed
8. A contract whereby either party is not able to sue the A » unenforceable
other party would be classified as:
An unenforceable contract
A » unenforceable is where neither party has
B » void standing in court to sue the
C » voidable other.
D » enforceable
9. A broker tells a buyer that the broker thinks a particu- D » puffing
lar house is the best in the neighborhood. The buyer
purchases the property only to find another property Puffing is a subjective opin-
later on that is more desirable. The broker is guilty of: ion and is not illegal - this
was just the broker`s opin-
A » misrepresentation ion.
B » fraud
C » bait and switch
D » puffing
10. A property has had termite problems in the past. A A » deceptive and fraudu-
broker tells a buyer that the termite problems have lent conduct
been taken care of knowing that the problems actually
still exist. The broker is guilty of: Knowingly misrepresenting
something in an attempt to
A » deceptive and fraudulent conduct make money would be de-
B » puffing ceptive and fraudulent con-
C » fraud only in skill and care duct.
D » negligent misrepresentation
11.
Study online at https://quizlet.com/_c0gqut
1. A seller and buyer enter into a sales contract on a B » follow through with the
property. The seller breaches the agreement causing original contract
the buyer to sue for specific performance. If the buyer
wins this lawsuit, the seller will have to: Specific performance is
court action to force com-
A » pay damages pletion. If the court orders
B » follow through with the original contract this, the seller must com-
C » return the earnest money to the buyer plete the original agree-
D » rescind the contract ment.
2. A seller and buyer have agreed to a sales contract. C » File for a writ of execu-
The buyer backs out of the agreement. Which of the tion
following could the seller NOT do?
A writ of execution is typical-
A » Sue for specific performance ly where the court orders a
B » Rescind the agreement sheriff to seize property and
C » File for a writ of execution sell it to satisfy a judgment.
D » Sue for compensatory damages
3. When a change is needed in a contract, the best way C » amendment
to accomplish this would be with a(n):
An amendment is used to
A » verbal agreement change an item in a con-
B » addendum tract.
C » amendment
D » new contract
4. A buyer and seller negotiated a sale whereby the D » Sue the seller for specif-
seller was to include all the kitchen appliances. Upon ic performance
moving in, the buyer discovered that the seller had
taken all the kitchen appliances. What would be the Specific performance is
buyer's best remedy? court action to force com-
pletion of a contract. This
, Exam Smart - Contracts
Study online at https://quizlet.com/_c0gqut
A » Declare the contract invalid would be the buyer`s best
B » The buyer is out of luck as the buyer negotiated remedy. (
this himself
C » Sue the seller for partial performance
D » Sue the seller for specific performance
5. A good example of a unilateral contract would be B » option contract
a(n):
An option contract is a one
A » sales contract way promise and is there-
B » option contract fore a unilateral contract.
C » listing contract
D » lease contract
6. R made a promise to sell the property to T. T, however, B » This is a unilateral con-
was only obliged to purchase the property if a certain tract where T does not have
condition was met. Which of the following statements to perform
would be true?
Since only R was definite-
A » This is a unilateral contract where R does not have ly making a promise, this
to perform was a uni-lateral contract -
B » This is a unilateral contract where T does not have T was the one who does not
to perform have to perform if a condi-
C » This is a bilateral contract and would be binding on tion was not met.
both parties
D » This is a non-enforceable agreement
7. A seller told a broker, "If you find me a buyer, I'll A » expressed
pay you a commission. However, I don't want to sign
a formal agreement." This type of agency would be An expressed agency is cre-
classified as an: ated, either orally or in writ-
ing, by a principal authoriz-
A » expressed
, Exam Smart - Contracts
Study online at https://quizlet.com/_c0gqut
B » implied ing an agent to act on their
C » executory behalf.
D » executed
8. A contract whereby either party is not able to sue the A » unenforceable
other party would be classified as:
An unenforceable contract
A » unenforceable is where neither party has
B » void standing in court to sue the
C » voidable other.
D » enforceable
9. A broker tells a buyer that the broker thinks a particu- D » puffing
lar house is the best in the neighborhood. The buyer
purchases the property only to find another property Puffing is a subjective opin-
later on that is more desirable. The broker is guilty of: ion and is not illegal - this
was just the broker`s opin-
A » misrepresentation ion.
B » fraud
C » bait and switch
D » puffing
10. A property has had termite problems in the past. A A » deceptive and fraudu-
broker tells a buyer that the termite problems have lent conduct
been taken care of knowing that the problems actually
still exist. The broker is guilty of: Knowingly misrepresenting
something in an attempt to
A » deceptive and fraudulent conduct make money would be de-
B » puffing ceptive and fraudulent con-
C » fraud only in skill and care duct.
D » negligent misrepresentation
11.
