AMP Real Estate Contract Law Test
Questions with 100% Correct Verified
Answers
Elements to adding addendums
1. Don't try to be a lawyer
2. Use plain English
3. Don't cloud the issues
Competent parties for a valid contract
Hold legal capacity
1. Attorney-in-fact
2. Minors
3. Partnership
4. Corporations
5. Court Appointees
Mutual Consent
Offer and Acceptance
Requirements for Mutual Consent
1. Meeting of minds
2. Be of freewill
3. Communicated back to offerer (accepted)
Can an offer be withdrawn
Yes, as long as it has not been accepted
How to terminate an offer
, 1. Lapse of time
2. Revocation of offer
3. Any alteration from offeree
4. Rejection by offeree
5. Death or insanity
6. Supervening illegality
Lawful Objective
Object of contract must be lawful when contract is made and possible by the time contract is
to be performed. Any contract that causes violation of law is VOID.
Good Consideration
Between loved ones
Valuable Consideration
Service, crops, cash, property. Earnest money down is evidence of good faith and is
not required in AL.
What is the requirement of Alabama contracts
Must be written
Parol Evidence Rule
Forbids any evidence to be introduced. To be enforceable, it must be in writing.
Priority of writing
Handwriting takes precedence over typing, typing takes precedence over pre-formed
document.
Dual Contracts
Intention is to defraud. Therefore, they are illegal.
Types of Fraud
Questions with 100% Correct Verified
Answers
Elements to adding addendums
1. Don't try to be a lawyer
2. Use plain English
3. Don't cloud the issues
Competent parties for a valid contract
Hold legal capacity
1. Attorney-in-fact
2. Minors
3. Partnership
4. Corporations
5. Court Appointees
Mutual Consent
Offer and Acceptance
Requirements for Mutual Consent
1. Meeting of minds
2. Be of freewill
3. Communicated back to offerer (accepted)
Can an offer be withdrawn
Yes, as long as it has not been accepted
How to terminate an offer
, 1. Lapse of time
2. Revocation of offer
3. Any alteration from offeree
4. Rejection by offeree
5. Death or insanity
6. Supervening illegality
Lawful Objective
Object of contract must be lawful when contract is made and possible by the time contract is
to be performed. Any contract that causes violation of law is VOID.
Good Consideration
Between loved ones
Valuable Consideration
Service, crops, cash, property. Earnest money down is evidence of good faith and is
not required in AL.
What is the requirement of Alabama contracts
Must be written
Parol Evidence Rule
Forbids any evidence to be introduced. To be enforceable, it must be in writing.
Priority of writing
Handwriting takes precedence over typing, typing takes precedence over pre-formed
document.
Dual Contracts
Intention is to defraud. Therefore, they are illegal.
Types of Fraud
