Extra Credits - Law
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School
St. John's University *
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Course
600
Subject
Law
Date
Jan 9, 2024
Type
docx
Pages
4
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Extra Credits
Chapter 6: Contracts
T/F Questions
1.
A minor’s contract is voidable at the election of the minor
2.
A contract entered into between an adult and a minor is unenforceable by both
parties
3.
Illiteracy of a party renders a contract unenforceable
4.
Lack of knowledge or inability or failure to read a contract does not make a person
mentally incompetent
5.
An executor has limited power to buy and sell real property on behalf of the estate
6.
An executor always has the power to buy and sell real property on behalf of an
estate
7.
The sale of property by a limited partnership requires that the limited partners sign
the contract
8.
A contract entered into by a trustee must be approved by the beneficiaries of the
trust
9.
A person being appointed to act under a power of attorney must be a lawyer
10.Generally, powers of attorney are automatically revoked by the death or instanity
of the principal
11. All contracts must be in writing to be enforceable
12.Not every contract must be in writing to be enforceable
13.A real estate contract must be in writing to be enforceable
14.The amount of money damages for a breach of contract is the difference between
the contract price and the market value of the real property at the time and place of
default
15.The amount of money damages for a breach of contract is the difference between
the contract price and the market value of the real property at the time the suit is
brought for breach of contract
16.Requiring a party to perform under a contract is known as rescission
17.Termination of a contract and reimbursement for expenses is known as specific
performance
18.Liquidated damage provisions contained in contracts are always enforceable
19.Liquidated damage provisions contained in a contract are designed to punish a
party for nor performing
20.The liquidated damage provisions in a contract are generally enforceable provided
they do not result in penalty
21.A real estate agent or broker, in order to earn a commission, must be the procuring
cause of the sale
22.An agreement whereby an owner hires a broker to sell real property is known as a
power of attorney
23.An agreement whereby an owner hires a broker to sell real property is known as a
listing agreement
24.An open listing entered into between an owner and an agent precludes the owner
from selling his or her own property
25.Under an exclusive listing, an owner hires only one broker to assist in the sale of
the real property
26.Under an exclusive listing, an owner still reserves the right to sell the real property
and avoid a commission
27.A listing agreement whereby the owner hires a broker to sell the property and the
owner agrees that if the property is sold, even if through the owner’s efforts, the
commission is owed is known as an open listing
28.A listing agreement whereby an owner hires only one broker to assist in selling the
property and the owner agrees that if the real property is sold, even if through the
owner’s efforts, a commission is owned is known as an exclusive right-to-sell
listing 29.A real estate broker owes to his or her client a duty to exercise all of the affairs of
the client in good faith and with loyalty
30.A real estate broker is not a fiduciary
31.A principal does not owe any duties and obligations to an agent
32.A real estate broker can have only express authority
33.A real estate broker may have both express authority and implied authority
34.A real estate broker’s implied authority is that authority given to the broker in the
listing agreement by the owner of the property
35.A real estate broker cannot represent both the seller and the purchaser in a
transaction
36.In many states, a real estate broker may be able to represent both the seller and the
purchaser in the same transaction
37.An owner’ basis in his or her property I the net sales price received by the owner
from the sale of the home
38.An owner’s basis in his or her property will always equal the owner’s depreciation
of the property
39.A real estate broker may be able to place a lien against an owner’s property to
secure unpaid real estate commission
MC Questions
1.
Which of the following is not a requirement for a valid contract?
2.
Which one of the following lacks legal capacity to enter into a binding contract?
3.
For which of the following persons would a power of attorney most likely be
used?
4.
Which of the following is most likely not a defense to the enforceability of a
contract?
5.
Which of the following is/are grounds for revocation of a power of attorney?
6.
The remedy for breach of a real estate contract that requires that the defaulting
party perform its obligations under the contract is known as
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7.
The remedy of rescission provides the injured party under a real estate contract
with the following relief:
8.
The measure of monetary damages for breach of an estate contract is computed as
follows:
9.
Seller enters into a contract with purchaser to sell real property for $100,000.
Purchaser defaulted on the contract, and at the time of default, the fair market
value of the property is $90,000.00. Seller shall be entitled to recover from
purchaser the following money damages:
10.Seller and purchaser enter into a contract to purchase real property at a fair market
value of $100,000. Seller refuses to perform the contract, and at the time of seller’s
default, the fair market value of the property is $110,000. The purchaser can
recover from the seller the following money damages
11. A section of a contract which provides that, in the event of default, the purchaser is
entitled to $10,000 from the seller is known as a 12.An agreement whereby an owner of real property hires a real estate broker to help
the owner sell the property is known as a 13.A listing agreement whereby an owner hires only one broker or agent to assist in
selling the real property and the owner agrees that if the real property is sold, even
if through the owner’s effort, a commission is earned by the broker or agent is
known as a(n)
14.Seller offers to sell their home to a purchaser for $70,000. The purchaser respond
that he will buy the home for $60,000. The seller refuses the purchaser’s offer to
buy for $60,000. After that refusal, the purchaser offers to buy the home for
$70,000. At this time, what is the legal relationship of the parties?
15.Which of the following is generally not a duty that a principal owes to an agent?
16.Which of the following cannot be added to an owner’s basis in a home?