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

Need help with your exam preparation?

Existing Quiz Clients Login here
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.   covenant.
C.   “subject to” provision or contingency clause.
D.   all answers are correct.
Question #2
When an existing contract is replaced with an entirely new contract, it is called:
A.   assignment.
B.   novation.
C.   rescission.
D.   subordination.
Question #3
Which of the following is a classification of a contract?
A.   Unenforceable
B.   Valid
C.   Voidable
D.   All answers are correct
Question #4
An assignment:
A.   is a new contract.
B.   is only for personal service.
C.   transfers only liability.
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.   They must be accompanied by a deposit of money or other items of value.
D.   An agent must give a copy to both buyer and seller.
Question #6
Which of the following is FALSE concerning options?
A.   They can be revoked at any time by the optioner (seller), without penalty.
B.   They have specific time periods.
C.   They are granted in exchange for money.
D.   They have specific terms.
Question #7
Consideration can best be described as:
A.   money paid in a contract.
B.   good will.
C.   anything of value.
D.   not necessary in a valid contract.
Question #8
A remedy for breach can be:
A.   an acceptance of breach.
B.   a unilateral rescission.
C.   all answers are correct.
D.   an action for damages.
Question #9
What is always true about a counter offer?
A.   It terminates the previous offer.
B.   It is made by the seller.
C.   The previous offer is still valid.
D.   It is made by the buyer.
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.   133% of the home purchase price.
D.   33% of the home purchase price.
Question #11
A signed written contract takes precedence over oral agreements or prior written agreements based on:
A.   English common law.
B.   the statute of frauds.
C.   the parol evidence rule.
D.   the performance rule.
Question #12
If one of the parties doesn’t go through with a contract (nonperformance), it is called a(n):
A.   assignment.
B.   breach.
C.   operation of law.
D.   consideration.
Question #13
A written contract between two parties is:
A.   implied and bilateral.
B.   express and unilateral.
C.   implied and unilateral.
D.   express and bilateral.
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 illegal.
D.   is a failure to perform.
Question #15
Which of the following forms are part of CAR's® "Purchase Agreement Package"?
A.   Wire Fraud and Electronic Funds Transfer Advisory (WFA)
B.   Buyer's Inspection Advisory (BIA)
C.   All answers are correct
D.   Disclosure Regarding Real Estate Agency Relationship (AD)
Question #16
Which of the following is used to change the original terms of the purchase agreement?
A.   Substitution form
B.   Contingency form
C.   Covenant form
D.   Counter offer form
Question #17
An agreement that is made either verbally or in writing is known as a(n):
A.   mutual consent.
B.   implied contract.
C.   express contract.
D.   all of the above.
Question #18
If a contract is said to be “executory,” it:
A.   has not yet been signed.
B.   is court ordered.
C.   has been discharged or performed.
D.   has not yet been performed.
Question #19
Which of the following is NOT considered a basic element of a contract?
A.   enforcement
B.   consideration
C.   capacity
D.   Mutual consent

Need help with your exam preparation?

Existing Quiz Clients Login here