Real Estate 101 - Real Estate Principles » Fall 2021 » Chapter 6 Quiz

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Question #1
A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:
A.   loan back-out clause.
B.   all answers are correct.
C.   covenant.
D.   “subject to” provision or contingency clause.
Question #2
When an existing contract is replaced with an entirely new contract, it is called:
A.   subordination.
B.   novation.
C.   rescission.
D.   assignment.
Question #3
Which of the following is a classification of a contract?
A.   Voidable
B.   Unenforceable
C.   All answers are correct
D.   Valid
Question #4
An assignment:
A.   is a new contract.
B.   transfers only liability.
C.   is only for personal service.
D.   transfers a person’s right in a contract.
Question #5
Which of the following is FALSE concerning purchase agreement contracts?
A.   Promissory notes and post-dated checks are never acceptable as consideration.
B.   When acceptance is communicated to the buyer, it becomes a binding contract.
C.   An agent must give a copy to both buyer and seller.
D.   They must be accompanied by a deposit of money or other items of value.
Question #6
Which of the following is FALSE concerning options?
A.   They have specific time periods.
B.   They are granted in exchange for money.
C.   They can be revoked at any time by the optioner (seller), without penalty.
D.   They have specific terms.
Question #7
Consideration can best be described as:
A.   money paid in a contract.
B.   anything of value.
C.   good will.
D.   not necessary in a valid contract.
Question #8
A remedy for breach can be:
A.   an acceptance of breach.
B.   an action for damages.
C.   all answers are correct.
D.   a unilateral rescission.
Question #9
What is always true about a counter offer?
A.   It terminates the previous offer.
B.   It is made by the buyer.
C.   It is made by the seller.
D.   The previous offer is still valid.
Question #10
The current award for liquidated damages on a purchase agreement form is a maximum of:
A.   3% of the home purchase price.
B.   13% of the home purchase price.
C.   33% of the home purchase price.
D.   133% of the home purchase price.
Question #11
A signed written contract takes precedence over oral agreements or prior written agreements based on:
A.   the performance rule.
B.   English common law.
C.   the parol evidence rule.
D.   the statute of frauds.
Question #12
If one of the parties doesn’t go through with a contract (nonperformance), it is called a(n):
A.   breach.
B.   assignment.
C.   operation of law.
D.   consideration.
Question #13
A written contract between two parties is:
A.   implied and bilateral.
B.   express and unilateral.
C.   express and bilateral.
D.   implied and unilateral.
Question #14
Any contract that can’t be performed within one year from the date of signing:
A.   must be in writing.
B.   is an example of duress.
C.   is a failure to perform.
D.   is illegal.
Question #15
Which of the following forms are part of CAR's® "Purchase Agreement Package"?
A.   Buyer's Inspection Advisory (BIA)
B.   Disclosure Regarding Real Estate Agency Relationship (AD)
C.   Wire Fraud and Electronic Funds Transfer Advisory (WFA)
D.   All answers are correct
Question #16
Which of the following is used to change the original terms of the purchase agreement?
A.   Counter offer form
B.   Covenant form
C.   Contingency form
D.   Substitution form
Question #17
An agreement that is made either verbally or in writing is known as a(n):
A.   express contract.
B.   implied contract.
C.   mutual consent.
D.   all of the above.
Question #18
If a contract is said to be “executory,” it:
A.   is court ordered.
B.   has not yet been performed.
C.   has been discharged or performed.
D.   has not yet been signed.
Question #19
Which of the following is NOT considered a basic element of a contract?
A.   capacity
B.   enforcement
C.   consideration
D.   Mutual consent

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