Chapter 9: Basic Contract Law

A contract in which mutual promises are exchanged at the time of signing (execution) is termed:

• A. multilateral
• B. unilateral
• C. bilateral.
• D. promissory.

Of the following statements regarding voidable contracts, which is NOT correct?

• A. A voidable contract can be voided by one or more parties.
• B. A voidable contract can be legally consummated by the parties.
• C. A voidable contract can never be consummated.
• D. A voidable contract results from failure to meet some legal requirement in negotiating the agreement.

For contracts in general, except for those of the sale of real property, the essential elements include all of the following EXCEPT:

• A. competent parties.
• B. offer and acceptance.
• C. legality of object.
• D. writing.

When are contracts considered to be assignable?

• A. ONLY when it is specifically stipulated in the contract that it is assignable.
• B. Contracts are always considered to be assignable.
• C. Anytime it is not prohibited.
• D. Contracts are never considered assignable.

Which of the following is the basis of duress?

• A. fear
• B. mistake
• C. indefiniteness
• D. illusion

A contract to sell real property may be terminated by each of the following EXCEPT:

• A. full performance.
• B. breach of contract.
• C. mutual agreement.
• D. death.

Which of the following has the effect of terminating contracts?

• A. consideration
• B. bankruptcy
• C. exercise
• D. assignment

In the event a seller defaults in his obligation to convey title to the property as agreed upon in a contract sale, which of the following remedies is available to the purchaser?

• A. suit for breach of contract
• B. suit for specific performance
• C. suit for compensatory damages
• D. all of the above

All of the following contracts are unilateral EXCEPT a(n):

• A. contract for the sale of real estate.
• B. open listing contract.
• C. option to purchase contract.
• D. contract to pay $1,000 if someone will paint your house.

A contract is automatically void if there is:

• A. duress.
• B. mutual mistake.
• C. willful misrepresentation.
• D. illegal purpose.