Real Estate Contracts 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. 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?

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

Question 3 3. What elements are required to form a legally binding real estate purchase contract?

Question 4 4. Two weeks ago Valerie's exclusive right to sell listing agreement expired. A potential buyer from three weeks ago places an offer that Valerie accepts. Her old broker demands his commission. What result?

Question 5 5. What neutral third party in dispute resolution helps to negotiate a settlement?

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Question 6 6. Contracts are usually made in an effort to formalize an agreement and to protect the parties in the agreement. A contract will place an obligation on each of the contracting parties. In contract law, what is the definition of obligation?

Question 7 7. Which of the following is the most likely to happen if for whatever reason the contract isn't completed?

Question 8 8. A ____ listing agreement entitles a broker to a commission when the property is sold even if the broker was not responsible for generating the sale.

Question 9 9. Jan noticed an ad in the paper that stated, 'Puppies for Sale.' Is this a valid offer?

Question 10 10. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor. Bernie then negotiates and makes an acting contract on Bart's behalf. What is this an example of?

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Question 11 11. A fully performed contract is what type of contract?

Question 12 12. Which of the following is NOT an advantage of a home inspection contingency during real estate negotiations?

Question 13 13. In an option contract, consideration is _____.

Question 14 14. Which of the following helps determine the amount of the earnest money payment?

Question 15 15. Jocelyn wants to purchase Marty's home for $200,000. Jocelyn requested a clause be added to the contract that states she would be allowed to get out of the contract if a house she toured the previous day and placed an offer on is accepted. Through which clause could the contract be terminated?

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Question 16 16.

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 17 17. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty never tells the homeowner that he is a real estate agent and that he is making the bid on Maggie's behalf. What is this an example of?

Question 18 18. Which of the following is implied in law to avoid an injustice?

Question 19 19. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty tells the homeowner that he is a real estate agent and that the bid is on behalf of a client, but never mentions that he is working on behalf of Maggie. What is this an example of?

Question 20 20. When one party wholly fails to fulfill his or her obligations under the contract, it is known as:

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Question 21 21. With what authority does the agent act with in order for a principal to be bound by a contract?

Question 22 22. Bob wants to purchase Nancy's home but needs financing. Nancy signed an option contract with Bob. While Bob secures the financing, Nancy finds a cash buyer who wants to make the purchase immediately. Which scenario is most likely to follow?

Question 23 23. Frederick was supposed to start his new job on June 3rd. He signed his employment agreement which stated he would not take any time off until September 2nd, or he would be terminated. The day before beginning work, Frederick's friend called saying that he had tickets to a movie premier on June 3rd. Frederick decided that he could get out of work if he slammed his hand in the kitchen drawer just hard enough to break a few bones. It worked, and he called his boss to let him know he would not be at work for a few days. In this circumstance, does the doctrine of impossibility of performance apply?

Question 24 24. A contract between two parties giving reciprocal promises is what type of contract?

Question 25 25. A _____ is a condition that must be satisfied or the real estate purchase contract can be voided.

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Question 26 26. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor and provides Bernie with a full portfolio including his head shots and resume. Bart sends Bernie to meet with potential employers, but tells Bernie not to sign anything until Bart has a chance to review the offer. Bernie proceeds to negotiate and sign an acting contract on Bart's behalf. What is this an example of?

Question 27 27. What is the most common type of buyer representation agreement?

Question 28 28. What neutral third party in dispute resolution has the authority to decide a dispute?

Question 29 29. Tom has entered into a contract where he can buy a specific parcel of real estate for $100,000 within 120 days of the contract's date. What's the best description of Tom's contract?

Question 30 30. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor. Bernie then negotiates and makes a contract for Bart to work as a bartender at a local restaurant. What is this an example of?

Real Estate Contracts 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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