Promulgated Contract Forms - Champions School Of Real Estate Latest Test

Essential elements of a contract include: A. Competent parties B. Offer and acceptance C. Consideration D. All of the above - ANSWER D. All of the above (**also includes legality of object) A contract must include all of these items except: A. Legal Description B. Sales Price C. Names of parties D. Type of loan - ANSWER D. Type of loan If a Seller counters a Buyer's offer, it is considered a rejection. A. True B. False - ANSWER TRUE It is considered illegal for a contract to include any discriminatory provisions. A. True B. False - ANSWER A. True The biggest majority of lawsuits come from the issue of: A. Fixtures vs. personal items that convey with the property B. Misunderstandings between brokers C. Non-disclosure D. Repair items - ANSWER C. Non-disclosure You can give legal advice to a buyer or seller if you understand all the facts. A. True B. False - ANSWER B. FALSE do not give legal advice to buyer/seller A Seller, age 30, enters into a contract with a Buyer, age 17. The contract is: A. Valid for both parties B. Void for both parties C. Voidable by the buyer D. None of the above. - ANSWER C. Voidable by the buyer He/she is a minor A bilateral contract is: A. A promise in exchange for a promise B. A promise made only by the agent C. A promise made only be the seller D. No promises - ANSWER A. A promise in exchange for a promise A unilateral contract only binds one party to perform. A. True B. False - ANSWER A. TRUE The clause in a contract stating that "time is of the essence" would indicate: A. The contract must be finalized immediately B. The contract must include the time of day the contract was executed C. Strict performance of a certain act within the time stated in the contract D. Monetary penalties will be incurred if the provisions are not met by certain times - ANSWER C. Strict performance of a certain act within the time stated in the contract