Ch. 4 Contracts and Agency

Mutual assent to a real estate contract is indicated by

• attestation

• offer and acceptance

• acknowledgment

• seals

An example of an executory oral contract that is enforceable is a

• lease for six months starting in six months

• sale of a lot for less than $500

• lease for two weeks starting in 12 months

• sale of drapes for $600

A contract of adhesion is a contract that

• is impossible to perform

• has no offeror

• is offered as "take it or leave it"

• cannot be breached

After an offer is accepted, the seller finds out that the broker was the undisclosed agent for the buyer, as well as the agent for the seller. What are the seller's rights?

• The seller can withdraw without obligation to broker or buyer.

• The seller can withdraw but is subject to liquidated damages.

• The seller can withdraw only with concurrence of the buyer.

• The seller is subject to specific performance if refusing to sell.

A voidable contract could be described as

• valid unless voided

• void unless validaded

• illegal

• unenforceable by either party

A remedy that puts the parties back in the positions they were in before entering into a contract is

• specific performance

• waiver

• recission

• accord and satisfaction

By agreement, one party to a contract was discharged and another party took her place. This is an act called

• a rescission.

• a reformation.

• a novation.

• an accord and satisfaction.

Which of the following is regarded as a customer of a broker?

• A property owner under an open sale listing

• A property owner under an exclusive sale listing

• A buyer under an exclusive buyer listing contract

• A buyer who is not represented by an agent

In an assignment of a contract,

• the old party is relieved of all contractual obligation.

• the assignor remains primarily liable for the contract.

• the assignee assumes contractual liability.

• a new agreement is substituted for the old agreement.

An anticipatory breach of contract is

• a statement by a party that they would not perform.

• a request for extension of time.

• failure to perform by date set for completion.

• a request for contract reformation.