Contracts

Question 1

Legal essentials of a contract are (CMLC)

Answer 1

Capable parties, mutual consent, lawful objection, consideration

Question 2

A valid contract is

Answer 2

Has all legal essentials

Question 3

A void contract is

Answer 3

If missing even one essential, underage party, illegal consideration

Question 4

A consideration is

Answer 4

Valuable, good, sufficient, adequate

Question 5

What is a novation

Answer 5

One party or obligation substituted for another

Question 6

Whats in a contingency

Answer 6

Nature, duration, method removed

Question 7

What type of contracts do not need to be in writing

Answer 7

Personal property listing or lease for 1 year or less

Question 8

A party able to enter into a contract

Answer 8

An emancipated minor

Question 9

What does it mean when a mutual consent in real estate contracts

Answer 9

Offer and acceptance

Question 10

What describes a cloud mutual consent

Answer 10

Misrepresentation, threats, duress

Question 11

A voidable contract describes as

Answer 11

Binding until rescinded, not illegal purpose, fraud, misrepresentation

Question 12

Actual fraud is described as intent to

Answer 12

Intent to deceive

Question 13

Constructive fraud is

Answer 13

Negligence

Question 14

If buyer loses ability to complete the purchase

Answer 14

The contract is unenforceable

Question 15

In a purchase contract (offer to purchase) when is the effective date

Answer 15

Final acceptance delivers to offeror, when all parties signed

Question 16

In a breach of the purchase contract, the buyer can sue seller within

Answer 16

Within 4 years

Question 17

If a purchase contract is signed by only 1 spouse

Answer 17

It is unenforceable

Question 18

In a purchase contract, what does “As Is” represent

Answer 18

Seller not willing to make repairs. Only includes observable conditions.

Question 19

If seller backs out, what can the buyer do

Answer 19

Buyer (not broker) sues for specific performance

Question 20

On owner occupied, liquidated damages cannot generally exceed coverage of

Answer 20

3% of purchase price

Question 21

When do you receive copy of signed purchase contract

Answer 21

At time of signing

Question 22

Purchase contract contains what aspect of time

Answer 22

Time is of the essence

Question 23

Where does the contingency removal clause exist

Answer 23

In purchase contracts

Question 24

What is a counteroffer

Answer 24

Rejection of original offer and a new one

Question 25

Multiple counteroffers must be

Answer 25

Must be disclosed

Question 26

Listings are defined as what type of contract

Answer 26

Bilateral employment contract

Question 27

Who are involved in a listing

Answer 27

Competent parties

Question 28

In a listing agreement, the commission clause must be in

Answer 28

10 point font in bold

Question 29

If a salesperson leaves broker, what happens to the listing

Answer 29

Listing stays with broker

Question 30

In an exclusive listing, it must have

Answer 30

Must have definite termination date

Question 31

An example of definite termination date for an exclusive listing is

Answer 31

90 days from signing

Question 32

In a residential listing agreement (seller reserved) if the owner sells (brings buyer)

Answer 32

No commission is owed

Question 33

In an exclusive right to sell, if the property sells

Answer 33

Pay commission

Question 34

In an open listing, if there are multiple brokers, who gets paid

Answer 34

The procuring cause gets paid

Question 35

In a net listing, owner nets his proceeds when

Answer 35

Before broker gets paid

Question 36

Describe the protection period clause in a listing agreement

Answer 36

Broker gets paid based on what happens after listing expires

Question 37

Where does the authority for broker to get paid get stated?

Answer 37

In the listing and must be in writing

Question 38

What protects from false information from seller

Answer 38

Hold harmless clause

Question 39

What describes leases

Answer 39

Rights of possession for paying rent

Question 40

When can you sublease or assign

Answer 40

If lease does not prohibit it

Question 41

Unwritten lease for more than a year is

Answer 41

Unenforceable

Question 42

Lessee who didn’t sign lease is what type of contract

Answer 42

Implied contract

Question 43

What’s a percentage lease in retail

Answer 43

Percentage of gross sales

Question 44

Maximum term for agricultural lease is

Answer 44

51 years

Question 45

In a net lease, tenant pays

Answer 45

Tenant pays fixed and variable expense

Question 46

If landlord does not maintain property

Answer 46

Tenants released by constructive eviction

Question 47

What is the agreement when you surrender

Answer 47

Agreement to terminate lease early

Question 48

What is an abandonment

Answer 48

Tenant vacates early

Question 49

What is estate of sufferance

Answer 49

Tenant stays after lease expires

Question 50

If the principal cancels before listing expires, principal could owe

Answer 50

Could owe 2 commissions

Question 51

If no written agreement, payment of commission can still be

Answer 51

Payment of commission permissible

Question 52

If no written extension of listing and it expires, what happens to the commission

Answer 52

Quite probably no commission

Question 53

Purchase of time share interests can be rescinded in how many days

Answer 53

Rescind in 7 days

Question 54

What is an example of unilateral contract

Answer 54

Options

Question 55

When a buyer is in an option contract

Answer 55

Optionee (buyer) is not bound to perform

Question 56

If seller is in an option contract

Answer 56

Optionor (seller) must sell to optionee

Question 57

In an unilateral contract, options and listing

Answer 57

Must disclose all

Question 58

In an advance fee contract, broker cannot

Answer 58

Cannot guarantee transaction

Question 59

For an advanced fee contract, how many days must you submit materials to commissioner

Answer 59

Not less than 10 days before publication

Question 60

A contract that is not to be performed within 1 year must be in writing is in which legal doctrine

Answer 60

Statute of frauds