Contract Law and Practice Flashcards
7 cards from real Arizona Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Law and Practice flashcards as text
If a purchase contract's earnest money is disputed and the parties cannot agree, an Arizona escrow agent typically:
Answer: Holds the funds until the parties agree or a court directs distribution
The escrow agent holds disputed earnest money until the parties agree or a court orders its distribution.
A contract induced by a false statement of material fact that the other party relied upon is voidable due to:
Answer: Misrepresentation
Misrepresentation of a material fact relied upon by a party makes the contract voidable.
The Arizona Residential Seller's Property Disclosure Statement (SPDS) is primarily used to:
Answer: Disclose the property's known condition to the buyer
The SPDS discloses the seller's knowledge of the property's condition to the buyer.
Consideration in a real estate contract refers to:
Answer: Something of value exchanged between the parties
Consideration is the value each party gives, such as money for the promise to convey property.
When a party fails to perform a material obligation without legal excuse, the party has committed a:
Answer: Breach of contract
Failing to perform a material contractual duty without legal excuse is a breach of contract.
A financing contingency in an Arizona purchase contract protects the buyer by:
Answer: Allowing cancellation and return of earnest money if the buyer cannot obtain a loan
A financing contingency lets the buyer cancel and recover earnest money if a qualifying loan cannot be obtained.
The doctrine of 'accord and satisfaction' occurs when parties:
Answer: Agree to accept different performance to settle an existing obligation
Accord and satisfaction settles an obligation by the parties agreeing to and completing a substituted performance.