WorksheetsP1 Ch 12 Contracts
Total questions: 10
Worksheet time: 5mins
An oral contract to sell mineral rights is performed by both parties. Six months later, the seller has second thoughts and wants to reclaim the rights under the Statue of Frauds. What is the likelihood that the seller will succeed?
Nil, because the Statute of Frauds is irrelevant to a contract that has been performed.
Good, because the contract is voidable.
Nil, because the buyer committed no fraud.
Good, because an oral contract to convey a real estate interest is unenforceable under the Statute of Frauds.
Which of the following contracts can be assigned to another party?
An exclusive agency agreement.
A contract for the sale of a house.
An employment contract between a broker and a salesperson.
An exclusive listing agreement.
The necessary condition of mutual consent may be found lacking in a contract if
the two parties did not discuss every possible interpretation of the contract's provisions.
the agreement is unwritten.
the offer which was accepted is vague.
one party did not have the legal authority to sign the contract.
Which of the following is an executory contract?
An expired lease.
An option to buy after it is exercised.
A recorded sale contract.
A sale contract before closing.
What is rescission?
The act of withdrawing an offer before it has been accepted.
The act of declaring a contract unenforceable.
The act of modifying the terms of an offer.
The act of nullifying a contract.
A buyer submits an offer to a seller and then dies in a car accident. Before learning of the buyer's death, the seller accepts the offer. Which of the following is true?
The seller must make a new offer with the same terms to the buyer's heirs.
The buyer's death terminated the offer.
The seller can force the buyer's estate to go through with the purchase.
The buyer's heirs have the option of enforcing the contract.
The valuable consideration necessary to make a contract valid must be
something of equal value with whatever is received in exchange
something tangible.
something specifically offered in exchange for something else.
money
A breach of contract is
a termination of the contract by the mutual consent of the parties.
a lawsuit to force a party to discharge the contract.
financial damage suffered by a party because another party has nullified a contract provision
the failure of a party to perform according to the terms of the contract.
A party sells a summer cottage appraised at $100,000 to a stranger for $50,000. The seller's family wants to challenge the validity of the sale contract. The most apparent weakness of the contract that they might be able to attack is the
lack of good faith on the part of the buyer.
lack of consent on the part of the seller's family.
insufficiency of the consideration exchanged for the property.
illegality of the contract's intent.
In a suit for damages by reason of default, the damaged party may claim liquidated damages if
the contract stated a specific amount due to a damaged party..
the contract stated that a damaged party could take legal action to enforce the contract.
the contract stated that a defaulting party could not profit from the contract.
the defaulting party owns property that can be foreclosed to pay the damages.
