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Real Estate Sales 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. When Pamona's doorbell rang at her San Francisco, California condo and the mailman was standing there with a big box with her name on it, she could only think her boyfriend finally remembered her birthday. Much to her dismay, it was not a birthday gift from him. Rather, it was a new food processor from a company she did not recognize. What happens now?

Question 2 2. Ethel, owner of Biddy's Bonnets, needed to purchase a few cases of straw hats for an upcoming event. She faxed a purchase order to Island Top Hats, a company with whom she often does business. They received the request and immediately shipped Ethel's order. Why does the Uniform Commercial Code deem this to be a legal transaction?

Question 3 3.

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 4 4. Doug is leasing a new apartment. The apartment is next door to a nightclub. Doug asks the leasing agent if the apartment is loud at night. The leasing agent has never been to the apartment at night, but tells Doug that he won't be able to hear the club. Doug leases the apartment and, unfortunately, it's very loud at night. What is this an example of?

Question 5 5.

Harry is known for drinking way too much and way too often. In fact, he might even be an alcoholic. After several beers, he decided to post an online ad to sell his car for $100.00 to the first buyer who shows up at the bar. He meant to say $10,000 but he was a bit tipsy when he typed the ad.

Billy Bob showed up with a hundred dollar bill and demanded the car. Harry refused to sell it. Did an enforceable unilateral contract exist?

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Question 6 6. For a bilateral contract to be valid, there must be consideration. What is consideration?

Question 7 7. John saw an ad for a new car in Sunday's paper. He noticed the model that he was most interested in started at $15,000. Does John have a valid offer?

Question 8 8. According to Carlill v. Carbonic, an offer can come in the form of a letter, newspaper, website, fax, email , or _____.

Question 9 9. What is an example of a real estate form that can be signed electronically?

Question 10 10. What is the name of the act that became law in 2000 that allows electronic signatures to be legally binding?

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Question 11 11. Sheila rented a storefront for her business, Sheila's Schnauzers. She plans on renting for a period of one year. What will Sheila and the landlord sign?

Question 12 12. In the case McDonald v. Hewitt, why did the court rule that McDonald could not receive a remedy from Hewitt?

Question 13 13.

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 14 14. 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?

Question 15 15. Which of the following is true of a counteroffer in the real estate negotiation process?

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Question 16 16. What is the definition of a financial contingency in the real estate negotiation process?

Question 17 17. In the 1998 case of Hollywood Fantasy Corporation v. Gabor, a planned event that had been pre-sold to customers was cancelled unexpectedly by Gabor. Why did the court decide NOT to award expectation damages to Hollywood Fantasy Corporation as a remedy?

Question 18 18. These damages are calculated by determining what amount of money it would take to re-establish the innocent party's economic position after losses suffered due to reasonable reliance on the promise.

Question 19 19. A fully performed contract is what type of contract?

Question 20 20. Which of the following is implied in law to avoid an injustice?

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Question 21 21. 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 22 22. 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?

Question 23 23. How is an amendment used in a real estate contract?

Question 24 24. What is an example of a real estate contract clause?

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

Question 27 27. 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 28 28.

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 29 29. Bridget was surfing a popular marketplace website in search of a new computer. She found a vendor that was selling a brand new computer for $500.00. The ad stated that the buyer needed to email the vendor in order to complete the transaction. Brenda sent an email to the seller with her credit card information and other pertinent details like her address and phone number. After waiting several weeks for shipment, she called the vendor; they had already sold out of the computers. Which statement BEST describes this predicament?

Question 30 30. What is misrepresentation?

Real Estate Sales 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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