Lesson 8 – Chapter 7 Quiz – Harman Real Estate Academy

Question 1 of 15

1. Question

A contract is bilateral if:

each party makes a promise, so that both parties are legally obligated to perform
only one of the parties is legally obligated to perform
it’s been put into words (either spoken or written)
it’s in the process of being performed

Question 2 of 15

2. Question

The contract states that $10,000 will be the sole compensation if one of the parties defaults. This sum is called:

cancelation damages
consideration
specific performance
liquidated damages

Question 3 of 15

3. Question

Which of these is one of four basic elements needed to make a contract legally binding?

A unilateral promise
A counteroffer
Mutual consent
Voidability

Question 4 of 15

4. Question

Without exception, to have legal capacity to enter into a contract a person must be:

at least 21 years old
able to read and to sign his name
registered with the superior court
mentally competent

Question 5 of 15

5. Question

A contract is not formed if the offer is:

revoked before it’s accepted
accepted before it expires
revoked after it’s accepted
accepted without any modification of its terms

Question 6 of 15

6. Question

The buyer and seller agreed that they would terminate their purchase agreement and the seller would keep the deposit the buyer had given him. This is an example of:

revocation
novation
rescission
cancelation

Question 7 of 15

7. Question

A contract signed under duress:

can be rescinded by either party
is voidable by the party who was forced to sign
does not fulfill the requirements of the statute of frauds
is treated as an implied contract

Question 8 of 15

8. Question

Consideration is:

not required for contracts that have been put into writing
not required if the contract has a lawful objective
something of value exchanged by the contracting parties
formal execution of the contract in the presence of at least two witnesses

Question 9 of 15

9. Question

The statute of frauds applies to:

a purchase agreement for a house
a purchase agreement for vacant land
a listing agreement for a piece of commercial real estate
all of the above

Question 10 of 15

10. Question

A statute of limitations:

limits the amount of consideration a party to a contract can be required to pay
limits the number of contracts a person can enter into in one year
sets a deadline for filing a lawsuit
sets a deadline for fulfilling the terms of a contract

Question 11 of 15

11. Question

A contract is voidable if one of the parties:

signed it under duress
used misrepresentation to persuade the other to enter into it
has the right to rescind it
all of the above

Question 12 of 15

12. Question

When a contract is rescinded:

performance must be completed within six months
the parties return any consideration that has been exchanged
a new party is substituted for one of the original parties
all of the above

Question 13 of 15

13. Question

A 17-year-old married man attempts to convey real property that he inherited from a relative. The contract to sell the property would be:

valid
void
voidable
unenforceable

Question 14 of 15

14. Question

Emma mistakenly believes that her lot is 32 acres when in reality it is only 31 acres. If Emma tells Scott that the lot is 32 acres, and Scott relies on that statement when he buys the lot, the contract is:

unenforceable
voidable
void
valid

Question 15 of 15

15. Question

When an offeree makes a counteroffer:

no contract is formed unless the original offeror accepts the counteroffer
the original offeror is required to accept the offeree’s modified terms
if the original offeror does not accept the offeree’s modifications, they have a binding contract on the terms originally offered
it creates a binding contract on the offeree’s modified terms, unless the modifications are unreasonable

Lesson 8 – Chapter 7 Quiz

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