Real Estate Level 6 Assessment: Contract Law Principles Flashcards

Real Estate Level 6 Assessment: Contract Law Principles Flashcards

Jerry and Paul have entered into a bilateral contract. At the time the contract was signed, Paul was under the influence

of alcohol. Their contract is:

voidable Which of these "acts of the parties" discharges is considered a unilateral act?revocation The term "cooling-off period" refers to a window of time

within which a party:

has the right to rescind specific types of contracts for any reason

A void contract:can't be completed even if the parties wish to

What does it mean for a contract to have "lawful objective"?that the contract doesn't require any illegal activities or have any illegal outcomes When Jane signed the contract to buy Melba's Mercedes convertible, neither party realized the contract listed the

wrong vehicle identification number (VIN). This contract is:

void An important distinction between void and voidable

contracts is:

Voidable contracts require one party to cancel the contract for it to be invalid. Void contracts are invalid from the start.The primary difference between an executory and an

executed contract has to do with:

whether or not the terms of the contract have been completely fulfilled by all parties Which of these is an example of an express contract?Aaron and Bill sign a contract saying that Aaron will purchase Bill's home for $500,000. All the terms are written in the contract.Which of these is illustrating a constructive condition?Martin signed a listing agreement with his agent. When it came time to pay the agent's commission, Martin tried to pay in crypto. A judge ordered Martin to pay in U.S. dollars.While the contract didn't specify the currency that must be used, it could be assumed the agent expected dollars.When Geni told Matt, her broker, that she wanted to take her house off the market even though there were four months to go in their listing agreement, Matt kindly agreed to let her out of the contract in exchange for reimbursement of his expenses (instead of his full broker fee). This is an

example of:

accord and satisfaction Which of these is an example of a contract ended by mutual agreement?Mal signed a listing agreement with agent Ginger. On the first day of showing, Mal changed her mind about selling the house. Ginger agreed to end the listing agreement contract and took the house off the MLS.Which of the following individuals is LEAST likely to be a party to a voidable contract?an adult of sound mind who entered into an agreement voluntarily The five basic elements of a valid contract are: legally competent parties, offer and acceptance, consideration, lawful objective, and reality of consent When a court interprets a contract, it will only consider what is actually printed (or written) on the page. What is the

name for this concept?the "four corners" rule

Which of the following provides the BEST definition of a contract?A contract is a legally binding agreement between parties wherein a promise to do or not do something is given in exchange for valuable consideration.When an individual hails a cab and tells the driver where they want to be taken, that passenger has entered into what kind of contract?implied

The forfeiture of earnest money is a common example of:liquidated damages

Why does alteration of contract result in discharge of the contract?because the new terms/conditions no longer represent the original intent of the parties Which of the following is TRUE when a counteroffer is made?The parties reverse roles.What is the word used to describe something valuable that each party exchanges in order to demonstrate that they agree to the contract's terms?consideration A contract entered into under duress or as result of fraud or

misrepresentation is:

voidable Which of these is a breach of contract legal remedy that requires the defaulting party to perform in accordance with the terms of the contract?specific performance A contract that is essentially valid but is without legal

remedy is said to be:

unenforceable What is the term used to describe the discharge of contracts as a result of the application of law without regard for the parties' agreement or cooperation?operation of law The reasons for the discharge of contracts usually fall under what two primary classifications?the operation of law and the acts of the parties Breach of contract has the effect of terminating the

defaulting party's rights while:

maintaining their obligations