#1
What does 'consideration' refer to in the context of real estate contracts?
The amount of money exchanged
The act of taking legal advice before signing
Something of value exchanged for a promise
The timeframe for performance
#2
What does 'capacity' refer to in the context of real estate contracts?
The size of the property being sold
The legal ability of parties to enter into contracts
The amount of money exchanged
The duration of the contract
#3
In real estate contracts, what is the purpose of 'earnest money'?
To demonstrate seriousness of intent to purchase
To pay the real estate agent's commission
To cover closing costs
To secure financing for the purchase
#4
What does 'closing' mean in a real estate transaction?
The initial stage of negotiations
The process of transferring ownership from seller to buyer
The inspection period
The final step before listing a property for sale
#5
What is 'earnest money deposit' in a real estate transaction?
Money paid by the buyer to secure the purchase offer
Commission paid to the real estate agent
Down payment on the property
Funds set aside for property repairs
#6
Which of the following contracts requires all terms to be in writing to be enforceable?
Oral Contract
Implied Contract
Express Contract
Statute of Frauds Contract
#7
What type of contract is created when one party fails to perform as promised under a contract?
Void Contract
Unilateral Contract
Bilateral Contract
Breach of Contract
#8
What is an 'option contract' in real estate?
A contract where both parties are required to perform
A contract granting the right to purchase or lease property at a set price within a specified period
A contract involving only one party's promise to perform
A contract that is void from the beginning
#9
Which type of contract is based on the actions and conduct of the parties involved, rather than explicit agreement?
Implied Contract
Express Contract
Oral Contract
Written Contract
#10
Which type of contract involves both parties making promises to each other?
Unilateral Contract
Bilateral Contract
Void Contract
Executory Contract
#11
Which type of contract is enforceable by law but may have provisions that could allow one or more parties to be released from obligations?
Voidable Contract
Executed Contract
Unenforceable Contract
Executory Contract
#12
In real estate, what does 'specific performance' typically refer to?
The completion of a contract according to its exact terms
A type of financing option for homebuyers
The process of transferring property ownership
The negotiation of contract terms
#13
What is the key difference between a 'valid' and a 'void' contract?
A valid contract is enforceable by law; a void contract lacks essential elements and cannot be enforced.
A valid contract is not enforceable by law; a void contract is enforceable but may lack terms.
A valid contract has one party's consent; a void contract has no consideration.
A valid contract can be oral; a void contract must be in writing.
#14
What does 'time is of the essence' mean in a real estate contract?
The contract is void if not completed within the specified time period
The contract allows unlimited time for performance
The contract can be extended indefinitely
Strict adherence to the time limits specified in the contract is required
#15
In a real estate contract, what does 'liquidated damages' refer to?
The amount of money exchanged between parties
The specific performance of the contract
A predetermined amount of damages agreed upon by parties in case of breach
The timeframe within which the contract must be completed