Champions Promulgated Contract Forms Questions Answered Correctly 2023

Champions Promulgated Contract Forms Questions Answered Correctly 2023

The five essential elements that must exist for a real estate sales contract to be considered valid and enforceable are: legal purpose, competent parties, mutual assent, consideration and ____________.

(a) Signature of witnesses

(b) In writing

(c) Acknowledgment by a notary

(d) Recording in county clerk's office ((Correct Ans:- (b) In writing

If a contract has been entered into with a person who has been judged to be incompetent, that contract is considered ____________ because that person never had the capacity to enter into it.

(a) Executed

(b) Valid

(c) Voidable

(d) Void ((Correct Ans:- (d) Void

Tammy is interested in Jolene's property, but wants to research the zoning laws before purchasing. She has and agreement in which she paid a fee of $10,000 to keep the property available for a preset price for 30 days, during which time Jolene cannot sell the property to another. Tammy, however, can change her mind if she likes. What kind of agreement is this?

(a) Bilateral

(b) Oral

(c) Option

(d) Void ((Correct Ans:- (c) Option

All oral negotiations are _________.

(a) Voluntary

(b) Involuntary

(c) Executory

(d) Binding ((Correct Ans:- (a) Voluntary

The _________ assumes primary liability for performance under the contract.

(a) Assignee

(b) Assignor

(c) Broker-Lawyer Committee

(d) Title company ((Correct Ans:- (a) Assignee