Chapter 7 Legal Aspects of Real Estate
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Contract - CORRECT ANSWER - An agreement to do or not to do a certain thing. It must
have four essential elements: parties capable of contracting, consent of the parties, a lawful
object, and consideration. A contract for sale of real property must also be in writing and signed
by the party or parties to be charged with performance.
Express Contract - CORRECT ANSWER - A contract that has been put into words, either
spoken or written.
Implied Contract - CORRECT ANSWER - An agreement that has not been put into words,
but is implied by the actions of the parties.
Bilateral Contract - CORRECT ANSWER - A contract in which each party promises to do
something.
Unilateral Contract - CORRECT ANSWER - When one party promises to do something if
the other party performs a certain act, but the other party does not promise to perform it; the
contract is formed only if the other party does perform the requested act.
Executory Contract - CORRECT ANSWER - A contract in which one or both parties have
not yet completed performance of their obligations.
Executed Contract - CORRECT ANSWER - A contract in which both parties have
completely performed their contractual obligations.
Enforceability - CORRECT ANSWER - The ability to sue for the enforcement of the
contract.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Contract - CORRECT ANSWER - An agreement to do or not to do a certain thing. It must
have four essential elements: parties capable of contracting, consent of the parties, a lawful
object, and consideration. A contract for sale of real property must also be in writing and signed
by the party or parties to be charged with performance.
Express Contract - CORRECT ANSWER - A contract that has been put into words, either
spoken or written.
Implied Contract - CORRECT ANSWER - An agreement that has not been put into words,
but is implied by the actions of the parties.
Bilateral Contract - CORRECT ANSWER - A contract in which each party promises to do
something.
Unilateral Contract - CORRECT ANSWER - When one party promises to do something if
the other party performs a certain act, but the other party does not promise to perform it; the
contract is formed only if the other party does perform the requested act.
Executory Contract - CORRECT ANSWER - A contract in which one or both parties have
not yet completed performance of their obligations.
Executed Contract - CORRECT ANSWER - A contract in which both parties have
completely performed their contractual obligations.
Enforceability - CORRECT ANSWER - The ability to sue for the enforcement of the
contract.
