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Overview of Contracts In Real Estate Transactions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. A fully performed contract is what type of contract?

Question 2 2. Which of the following is incorrect about express contracts?

Question 3 3. Under the merger doctrine, what are the provisions for purchase terms of agreement merged into the deed?

Question 4 4. What neutral third party in dispute resolution helps to negotiate a settlement?

Question 5 5. Harry and Joe were hanging around the bar when Harry proposed that Joe buy his boat for $500. Joe jumped at the chance to make the deal and paid him on the spot. Harry legally owned the boat, both are adults and nothing illegal was written into the contract. Harry delivered the boat three days later. The next week, Joe had regrets. What can Joe do?

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Question 6 6.

Sonny needed a quick few bucks to take his girlfriend out for a shake and fries. Since Sonny doesn't work, he sometimes takes a few oranges from the groves on the side of the highway and sells them to small grocery stores.

One of the stores asked Sonny for a large quantity of oranges. Sonny drafted a contract for the sale of 10 bags of oranges in exchange for fifty dollars. What can the grocery store owner do if he finds out that Sonny is selling stolen oranges?

Question 7 7. Samantha and Terry contracted for the sale of a unicycle. Samantha paid Terry $10, and Terry handed over the unicycle to her. What type of termination of contract occurred?

Question 8 8. Hector was supposed to watch Derek's dog for the weekend for a fee of $50. The plans were made, and the contract outlining Hector's responsibilities was signed. On the way over to Derek's house, Hector received a phone call from Derek informing him that his dog fell ill and would need to be hospitalized over the weekend. What type of termination occurred?

Question 9 9. A _____ listing agreement is illegal in some states.

Question 10 10. Larry wants more than one broker competing to get him the best deal possible. What type of listing agreement may accomplish this?

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Question 11 11.

Bill owns a pawn shop that sells jewelry. He has a beautiful gold plated necklace that he wants to sell. He switches the tag on the clasp that says Gold Plated to one that says 18k and sells it to Rita after telling her it is solid 18k Gold. Two weeks after Rita buys it, it breaks. When Rita takes it to her jeweler, the jeweler tells her he cannot repair it because it is gold plated. Rita sues Bill for contract fraud.

What was the material misrepresentation in the formation of this contract?

Question 12 12. What is misrepresentation?

Question 13 13. Keelan needs to sell his existing home before he can complete the purchase of a new one. What form would this be addressed on?

Question 14 14. Keelan has to get a mortgage for a home that he wants to buy. He will get a FHA loan and pay $3,500 down. Where will this be addressed in his contract?

Question 15 15. Which of the following helps determine the amount of the earnest money payment?

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Question 16 16. Which of the following is an acceptable place to hold an earnest money deposit escrow account?

Question 17 17. How many parties are involved in a novation?

Question 18 18. Which parties must be involved in a contract assignment?

Question 19 19. Which of the following is true of a counteroffer in the real estate negotiation process?

Question 20 20. What is the definition of a financial contingency in the real estate negotiation process?

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Question 21 21. What is a great advantage of a real estate agent using a paperless option?

Question 22 22. How does an electronic signature impact a real estate transaction?

Question 23 23. Which of the following is a buyer's agent duty?

Question 24 24. Which is the best definition of a fiduciary?

Question 25 25. Which of the following is not required for the application of promissory estoppel?

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Question 26 26. Ed orally agrees to give Laura an easement to cross over Ed's land to reach a lake. The next day, he changes his mind. Is the agreement enforceable?

Question 27 27. A ____ creates a promissory note and gives it to the ____.

Question 28 28. A person that gives value in good faith for a note and has no notice of any adverse claim or defect regarding it is called a ____.

Question 29 29.

A total breach of contract occurs when a party wholly fails to fulfill his or her obligations under a contract. Which of these examples demonstrates a total breach of contract?

For each example, Rick has hired Mitch to build a tree house in the large oak tree in his backyard. The tree house is for his grandchildren. It should have three windows and be completed in time for them to enjoy during their visit for Spring Break.

Question 30 30. Shelly wants to open a smoothie shop in her neighborhood. She hires Wayne to do market research for her. Wayne is obligated to research the need for a smoothie shop in that neighborhood. Wayne conducts the research and delivers his report to Shelly, along with a bill for $1000. Shelly reviews the research and discovers that Wayne accidentally researched the wrong neighborhood. Shelly sues Wayne for breach of contract. The court should enforce a remedy suitable for which type of contract breach?

Overview of Contracts In Real Estate Transactions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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