Contracts Flashcards
Alex, 14, and Kent, 17, inherited a piece of property. The next year, Kent deeded the whole property to Alex, who immediately put it on the market. An adult buyer made a written offer which was accepted by Alex. Which of the following is TRUE?
The buyer cannot legally compel Alex to sell.
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
a contract.
A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract. In this situation, if the seller takes the appliances with him, what recourse does the buyer have?
The buyer may sue the seller for specific performance.
If the terms of a contract indicate that Party A will be obliged to perform her part of the contract only if Party B chooses to take a certain action, then the contract is a
unilateral contract in which only Party A has made a promise to perform.
A seller signs a listing agreement with a broker. The seller can cancel the listing at any time without legal liability if
the broker violates the terms of the contract.
When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should
have short deadlines
A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called
an option contract.
An example of a contract terminated due to inability to perform would be one in which the
seller had contracted for sale of the entire property without the knowledge or consent of the other joint tenant.
A company agrees to lease a property to be used as a gambling casino. State laws prohibit gambling. This particular contract would be legally defined as
void.
A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable?
The seller is heavily under the influence of alcohol at the time of signing.
A contract for the sale of a home has been signed by both parties. This contract will remain executory until
the transaction has closed.
Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?
The buyer finds a better property for better terms.
The sellers want to accept a purchase offer, but only if the price is raised by $5,000. What should they give the prospective buyer?
Counteroffer.
A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if
the owner withdraws the counteroffer before it is accepted.
