Ch. 7 Exam

Question 1

To create a valid real estate contract, the acceptance of the written offer must be:

Answer 1

In writing, within the time specified in the offer, and delivered to the offeror.

Under the statute of fraud’s, all real estate contracts must be in writing to be valid. If the offer is in writing, the acceptance must also be in writing, even in types of contracts not covered by the statute. An offer must be excepted within the time specified in the offer or it is void. Delivery of the acceptance is one of the elements of a valid contract.

Question 2

A contract having no force or affect in law is:

Answer 2

Void.

A contract that lacks an essential element is void and unenforceable.

Question 3

A voluntary agreement between legally competent parties to do or not to do something is known as:

Answer 3

A contract.

Question 4

Which of the following is not a required element for a contract to be valid?

Answer 4

Notarization.

To be valid a contract must have competent parties, consideration, and legal purpose.

Question 5

A minor change in an offer by the offeree constitutes:

Answer 5

A counter offer.

Any change of terms to an offer by the offeree, no matter how minor, constitutes a counter offer and terminates the original offer.

Question 6

The statute of fraud’s requires:

Answer 6

Certain contracts are in writing.

Question 7

Which of the following real estate documents are unilateral contract?

Answer 7

Listing agreements and option contracts.

A unilateral contract is one in which only one party makes a promise certain. Both the listing agreement and an option contract are unilateral contracts

Question 8

A voidable contract is one that is:

Answer 8

Enforceable, but is subject to rescission by one of the parties.

A voidable contract is one that is capable of being made void, where in the injured party may either ratify the contract or cause it to be rescinded.