LAW OF CONTRACTS CHAMPIONS EXAM, PRACTICE
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
400 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
In a residential lease with a "right of first refusal" provision: - ANSWER: The tenant
has the right to match or better any offer the landlord receives to prevent the
property from being sold to someone else
The four ECONOMIC characteristics of land are: - ANSWER: 1) Scarcity
2) Modification
3) Situs
4) Fixity
GIVES LAND ITS VALUE
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER: 90 days
A contract that is said to lack mutuality because only one party is obligated to
perform is a________ contract. - ANSWER: Unilateral Contract
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the
category of ________. - ANSWER: Services
The five essential elements of a valid and enforceable contract are: - ANSWER: COLIC
1. Component parties
2. Offer and acceptance
3. Legal purpose
4. In writing
5. Consideration
________ law is a body of law based on "common sense" and local custom. -
ANSWER: Common Law
A(n) ________ is a business venture that is owned by one individual. - ANSWER: Sole
proprietorship
A(n) __________ is an agreement between two or more parties to do something or
to refrain from doing something. - ANSWER: Contract
The fact that the value is affected by manmade changes to the land. - ANSWER:
Modifications
, Jake (Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's personal
residence. In the contract, Jake promised to deliver a seller's disclosure of property
condition within 5 days of the effective date of the contract. Jake never delivered the
disclosure as promised. Which of the following statements is true? - ANSWER: Sarah
has the right to terminate the contract and receive a refund of earnest money prior
to closing
Owners within a __________________ do not actually own a specific unit. The entire
cooperative complex is
owned by a corporation. Those who wish to live in the cooperative buy shares in the
corporation, and
receive a proprietary lease on the unit. When listing and selling cooperatives, a real
estate license is often
not required because the sale of a cooperative is the sale of stock rather than real
property. - ANSWER: Cooperative
________ is the right of the government to regulate and control the way land is
used. - ANSWER: Police Power
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANSWER: Encumbrance
An example(s) of an appurtenance would be: - ANSWER: Easement
The four major types of listing agreements are, exclusive agency, net listing,
exclusive right to sell and __________. - ANSWER: Open listing
*Know that with a NET LISTING, the real estate broker's commission is the difference
between the minimum net established by the seller and the price that the buyer is
willing to pay.
The four categories of leasehold estates are: estate for years, tenancy at sufferance,
tenancy at will and ________. - ANSWER: Periodic tenancy or periodic estate
If a broker receives more than one offer on a property: - ANSWER: All must be
presented to the seller unless the seller has instructed the broker otherwise; no offer
has priority of presentation over another
___________________ is deposited in an escrow account when the contract is
signed by all parties and acceptance is
communicated. It's negotiable - ANSWER: Earnest money
License holders should ensure that any _____________ ______________ added to a
contract are factual statements that do not change the legal effect of the contact -
ANSWER: Special Provisions
EXAM AND STUDY GUIDE LATEST 2024 ACTUAL EXAM
400 QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS) |ALREADY
GRADED A+
In a residential lease with a "right of first refusal" provision: - ANSWER: The tenant
has the right to match or better any offer the landlord receives to prevent the
property from being sold to someone else
The four ECONOMIC characteristics of land are: - ANSWER: 1) Scarcity
2) Modification
3) Situs
4) Fixity
GIVES LAND ITS VALUE
The Buyer and Seller Temporary Residential Lease forms may be used for a lease
period not to exceed: - ANSWER: 90 days
A contract that is said to lack mutuality because only one party is obligated to
perform is a________ contract. - ANSWER: Unilateral Contract
According to the Deceptive Trade Practices Act (DTPA), brokerage falls under the
category of ________. - ANSWER: Services
The five essential elements of a valid and enforceable contract are: - ANSWER: COLIC
1. Component parties
2. Offer and acceptance
3. Legal purpose
4. In writing
5. Consideration
________ law is a body of law based on "common sense" and local custom. -
ANSWER: Common Law
A(n) ________ is a business venture that is owned by one individual. - ANSWER: Sole
proprietorship
A(n) __________ is an agreement between two or more parties to do something or
to refrain from doing something. - ANSWER: Contract
The fact that the value is affected by manmade changes to the land. - ANSWER:
Modifications
, Jake (Seller) and Sarah (Buyer) entered into a contract for the sale of Jake's personal
residence. In the contract, Jake promised to deliver a seller's disclosure of property
condition within 5 days of the effective date of the contract. Jake never delivered the
disclosure as promised. Which of the following statements is true? - ANSWER: Sarah
has the right to terminate the contract and receive a refund of earnest money prior
to closing
Owners within a __________________ do not actually own a specific unit. The entire
cooperative complex is
owned by a corporation. Those who wish to live in the cooperative buy shares in the
corporation, and
receive a proprietary lease on the unit. When listing and selling cooperatives, a real
estate license is often
not required because the sale of a cooperative is the sale of stock rather than real
property. - ANSWER: Cooperative
________ is the right of the government to regulate and control the way land is
used. - ANSWER: Police Power
A claim, lien, charge, or liability attached to and binding real property is a(n)
________. - ANSWER: Encumbrance
An example(s) of an appurtenance would be: - ANSWER: Easement
The four major types of listing agreements are, exclusive agency, net listing,
exclusive right to sell and __________. - ANSWER: Open listing
*Know that with a NET LISTING, the real estate broker's commission is the difference
between the minimum net established by the seller and the price that the buyer is
willing to pay.
The four categories of leasehold estates are: estate for years, tenancy at sufferance,
tenancy at will and ________. - ANSWER: Periodic tenancy or periodic estate
If a broker receives more than one offer on a property: - ANSWER: All must be
presented to the seller unless the seller has instructed the broker otherwise; no offer
has priority of presentation over another
___________________ is deposited in an escrow account when the contract is
signed by all parties and acceptance is
communicated. It's negotiable - ANSWER: Earnest money
License holders should ensure that any _____________ ______________ added to a
contract are factual statements that do not change the legal effect of the contact -
ANSWER: Special Provisions
