Contracts and Contract Law 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 Contracts and Contract Law flashcards as text
The transfer of contractual rights to a third party, while the original party may remain liable, is called:
Answer: Assignment
Assignment transfers rights to another party, but the original party often remains secondarily liable.
In Arizona, a listing agreement between a seller and broker is primarily a type of:
Answer: Employment/agency contract
A listing agreement is an employment contract that creates an agency relationship between the seller and broker.
An option contract gives the optionee the:
Answer: Right, but not the obligation, to buy within a set period
An option contract grants the right, but not the obligation, to purchase within a specified time for consideration.
What term describes a contract that is missing an essential element and therefore has no legal effect?
Answer: Void
A void contract lacks an essential element and has no legal effect from the outset.
A buyer's contingency for financing in a purchase contract functions to:
Answer: Allow the buyer to cancel if unable to secure financing
A financing contingency lets the buyer cancel and recover earnest money if a qualifying loan cannot be obtained.
The mutual agreement to cancel a contract and return parties to their original positions is:
Answer: Rescission
Rescission cancels the contract and restores the parties to their pre-contract positions.
Under Arizona law, a minor who enters a real estate contract creates a contract that is generally:
Answer: Voidable by the minor
Contracts with minors are voidable at the minor's option because minors lack full contractual capacity.