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Your Daily Quiz
Newsletter FOR REAL ESTATE
STUDENTS NUMBER
4 |
IN THIS ISSUE
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CONTRACTS
QUESTIONS
These questions will be incorporated
into the Topic du Jour at some point (and already has been), but newsletter
subscribers can get the advanced screening!
There might be one or two questions duplicated throughout Your Daily
Quiz, but it never hurts to do anything twice.
Answers and explanations can be found here,
but do the questions first.
Question 1
A land contract is
A.
also called an installment contract.
B.
for unimproved property only.
C.
used to convey ground rent.
D.
used to transfer title quickly.
Question 2
A form used to terminate a transaction, used in some
states by a broker to get a written release from both the buyer and seller to
authorize the refund of earnest money is a
A. release deed.
B. cancellation agreement.
C. quitclaim.
D. termination form.
Question 3
A new offer made as a reply to an offer
received. It has the effect of
rejecting the original offer, which cannot be accepted thereafter unless
revived by the offeror.
A. Counter-offer.
B. Contingency.
C. Sub-offer.
D. Novation.
Question 4
Which of the following is a bilateral contract?
A. Option contract.
B. Open listing.
C. Exclusive Authorization to Sell listing.
D. A reward.
Question 5
An oral contract to rent a warehouse to store cocaine
for one year is
A. Valid.
B. Void.
C. Voidable.
D. Unenforceable.
Question 6
All of the following are essential to a contract
except:
A. Delivery and acceptance.
B. Voluntary agreement.
C. Competent parties.
D. Consideration.
Question 7
Which of the following statements is true?
A. In a novation, the original party to a
contract that has been replaced would not be held liable if the new party
defaults.
B. If a contract is assigned, only the assignor
could be held liable upon default.
C. If a contract is assigned, only the assignee
could be held liable upon default.
D. All contracts can be assigned.
Question 8
A man owns a 10 acre rabbit farm. He signs a contract to sell the farm, and
adds the provision that 3 acres has to be resold to the rabbits, and the buyer
ratifies the contract. The man dies
before settlement can take place. Which
of the following would most likely be true?
A. The contract would not be valid because he was
not of sound mind when he signed the contract.
B. The contract would be valid because his family
would be legally obligated to abide by his wishes.
C. The contract would not be valid because a sale
could not go through if the seller is not alive to sign the deed.
D. The property will go to his hares.
Question 9
A lease must contain all, but which of the following?
A. Mutual agreement.
B. Consideration.
C. Acknowledgment.
D. Legal purpose.
Question 10
A purchase agreement with the phrase "time is of
the essence," requires the buyer to apply for his loan within 5 days of
acceptance. On the way to the loan application,
the buyer is in a serious car accident and is unconscious for a week. Which of the following is true?
A. Because it would be considered reasonable that
the buyer could not have made his loan application, he could do it after he
regains consciousness.
B. The buyer and seller could extend the
contract.
C. The contract would become voidable by the
seller.
D. The contract would no longer be valid.
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