Contracts Flashcards
7 cards from real 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 flashcards as text
A land contract (contract for deed) is one in which:
Answer: The seller retains title until the buyer pays in full
In a land contract, the seller keeps legal title while the buyer makes installment payments until paid off.
Which clause allows a buyer to back out if they cannot obtain a mortgage?
Answer: Financing contingency
A financing contingency lets the buyer cancel without penalty if loan approval is not obtained.
Fraud in a contract makes the agreement:
Answer: Voidable by the injured party
Fraud makes a contract voidable at the option of the party who was deceived.
An executory contract is one in which:
Answer: Something remains to be performed by one or both parties
An executory contract still has obligations remaining to be performed, such as a signed sale before closing.
Which of the following best describes 'duress' in contract formation?
Answer: Unlawful pressure forcing a party to agree
Duress is unlawful coercion or threat that forces a party into a contract, making it voidable.
A bilateral contract is characterized by:
Answer: A promise exchanged for a promise
A bilateral contract involves mutual promises, where both parties are obligated to perform.
If both parties to a contract share a mistaken belief about a material fact, the contract may be:
Answer: Rescinded due to mutual mistake
A mutual mistake about a material fact can be grounds for rescinding the contract.