Exam (elaborations)
NC Post-Licensing 302 - Unit Test Questions with answers
- Course
- Institution
NC Post-Licensing 302 - Unit Test Questions with answers
[Show more]
Content preview
NC Post-Licensing 302 - Unit TestQuestions with answers
In a real estate transaction, which of the following is an example of consideration? - ANSWER:
g g g g g g g g g g g g g g g g
➡ The seller's promise to sell
g g g g g g
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner, so you
g g g g g g g g g g g g g g g g g
had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one dollars and
g g g g g g g g g g g g g g g g
no/100 cents." Which amount takes priority? - ANSWER: ➡ The handwritten number
g g g g g g g g gg g g g
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these
g g g g g g g g g g g g g g g g
actions changes the contract from executory to executed? - ANSWER: ➡ Dierks' lender funded
g g g g g g g g g g gg g g g
the loan, and closing took place
g g g g g g
_______ is an example of circumstances that are beyond the buyers' control, meaning they can't
g g g g g g g g g g g g g g
practically do what they've agreed to do, and the offer terminates. - ANSWER: ➡ Destruction
g g g g g g g g g g g g g gg g
of property
g g
If a contract is for an illegal purpose, it's ______ - ANSWER: ➡ Void
g g g g g g g g g g g gg g
Which of the following is NOT a valid reason for an offer termination in North Carolina? -
g g g g g g g g g g g g g g g g
ANSWER: ➡ Improper forms
g gg g g
Which offer would be the most appealing to a seller? - ANSWER: ➡ It depends on the seller's
g g g g g g g g g g g gg g g g g g
needs and motivations
g g g
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract with
g g g g g g g g g g g g g g g g
the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he doesn't want to let his
g g g g g g g g g g g g g g g g g
cousin down. So instead of pulling out altogether, Dewey convinced his son to replace him in
g g g g g g g g g g g g g g g g
the purchase contract. Kirk and Crystal agreed to the substitution, and Dewey was released
g g g g g g g g g g g g g g
,from all his obligations under the contract. Dewey's son is now the contracting party. What's
g g g g g g g g g g g g g g g
this an example of? - ANSWER: ➡ Novation
g g g g g g gg g
What type of language should be used to write contracts? - ANSWER: ➡ Plain language
g g g g g g g g g g g gg g g
When does offer and acceptance occur? - ANSWER: ➡ When both parties sign a contract with
g g g g g g g gg g g g g g g g
the full understanding of the terms.
g g g g g g
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to
g g g g g g g g g g g g g g g g
purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises his
g g g g g g g g g g g g g g g g g
option to buy, only Sylvan is bound by the option agreement; he may not sell the property to
g g g g g g g g g g g g g g g g g g
anyone else during the option period. What type of contract is this? - ANSWER: ➡ Unilateral
g g g g g g g g g g g g g g gg g
Three of these statements about interpreting contracts are true, and one is not. Which
g g g g g g g g g g g g g
statement is FALSE? - ANSWER: ➡ A handwritten insertion can be canceled out by typing over
g g g g g gg g g g g g g g g g g
it.
g
What is wrong with this statement: "Handwritten information on a contract is not legally
g g g g g g g g g g g g g
binding. All insertions must be typed."? - ANSWER: ➡ Insertions do not have to be typed to be
g g g g g g g g gg g g g g g g g g g
legally binding.
g g
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping
g g g g g g g g g g g g g g
the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a
g g g g g g g g g g g g g g g g
commission. What type of agreement do Desmond and the Harpers have? - ANSWER: ➡
g g g g g g g g g g g g g gg
Bilateral
g
The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales
g g g g g g g g g g g g g g
contract. The funds, and the title, should transfer in a matter of days, but otherwise the all
g g g g g g g g g g g g g g g g g
elements and terms of the contract have been met. What type of contract do the Nettles and the
g g g g g g g g g g g g g g g g g g
Briars have? - ANSWER: ➡ Executory
g g g g gg g
Ruthie is explaining the termination option to her buyer client. How would she explain that
g g g g g g g g g g g g g g
"time is of the essence" is for the discharge under operation of law option? - ANSWER: ➡ "This
g g g g g g g g g g g g g g g g gg g
,means that if the seller doesn't decide by the deadline, the buyer is no longer held to the
g g g g g g g g g g g g g g g g g g
contract"
g
Why do you think that handwritten changes take priority over typed changes? - ANSWER: ➡
g g g g g g g g g g g g g gg
It's less likely to be done inadvertently
g g g g g g g
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected
g g g g g g g g g g g g g
that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and
g g g g g g g g g g g g g g g g g
they added their signatures. Which of the following statements is correct? - ANSWER: ➡
g g g g g g g g g g g g g gg
Breanna accepted the offer Kathy made
g g g g g g
Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to
g g g g g g g g g g g g g g g
sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part
g g g g g g g g g g g g g g g g g g g g g
of a legal business dealing. What kind of contract do Rex and Ben have? - ANSWER: ➡ Void
g g g g g g g g g g g g g g g g gg g
Which of the following is a legitimate reason to counter an offer? - ANSWER: ➡ Price
g g g g g g g g g g g g g gg g
When a seller's agent receives a written offer from a prospective buyer, how must it be
g g g g g g g g g g g g g g g
handled? - ANSWER: ➡ It must be submitted promptly to the seller
g g g gg g g g g g g g g
Which of these sentences accurately lists rules for interpreting a contract? - ANSWER: ➡
g g g g g g g g g g g g gg
Typed text takes precedence over pre-printed text, and spelled-out numbers (e.g. four) take
g g g g g g g g g g g g g
precedence over numerals (e.g. 5)
g g g g g
Zelda received an offer from Matthew for her house on Monday. The offer is set to expire
g g g g g g g g g g g g g g g g
Wednesday. After a sleepless night on Monday, Matthew told his broker to revoke the offer.
g g g g g g g g g g g g g g g
Zelda hadn't accepted the offer as of Tuesday night. What happens to Matthew's offer? -
g g g g g g g g g g g g g g g
ANSWER: ➡ The offer is terminated under contract revocation laws
g gg g g g g g g g g
Kent has received an offer for his house. What is the best solution if there are some offer terms
g g g g g g g g g g g g g g g g g g
he's hesitant to accept? - ANSWER: ➡ Reject the offer but reply with a form that outlines
g g g g g g gg g g g g g g g g g g
acceptable conditions
g g
, When does substantial performance of a contract occur? - ANSWER: ➡ One party has met
g g g g g g g g g gg g g g g
most but not all of the terms specified in the contract, and may be required to pay damages for
g g g g g g g g g g g g g g g g g g g
the terms not met
g g g g
Thad received multiple offers on his property and is reviewing them with his agent Nora. All of
g g g g g g g g g g g g g g g g
the offers have at least one contingency. Nora recommends that they reject the second offer,
g g g g g g g g g g g g g g g
because it has a contingency that's generally the most risky. Which contingency is that? -
g g g g g g g g g g g g g g g
ANSWER: ➡ Home sale
g gg g g
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer.
g g g g g g g g g g g g g g
Kendra is now considering the counter. What role does Kendra currently have in this scenario?
g g g g g g g g g g g g g g g
- ANSWER: ➡ Offeree
g g gg g
What does the parol evidence rule say about contracts? - ANSWER: ➡ The terms agreed to in a
g g g g g g g g g g gg g g g g g g
written contract are the only terms relating to that contract
g g g g g g g g g g
Barney and Zack signed a sales contract. Zack changed the down payment amount from $2,000
g g g g g g g g g g g g g g
to $5,000 using a software program. Barney then wrote $4,500 by hand on a printed copy and
g g g g g g g g g g g g g g g g g
sent it back to Zack. What is the amount of the down payment since both parties have signed? -
g g g g g g g g g g g g g g g g g g g
ANSWER: ➡ $4,500
g gg g
What is the definition of a legally competent party? - ANSWER: ➡ Someone who has the legal
g g g g g g g g g g gg g g g g g
and mental capacity to enter into a contract
g g g g g g g g
Which party is bound by a bilateral contract? - ANSWER: ➡ Both the seller and the buyer
g g g g g g g g g gg g g g g g g
Which of the following is a good rule of thumb regarding multiple offers? - ANSWER: ➡ Make
g g g g g g g g g g g g g g gg g
sure to consider all the terms of each offer
g g g g g g g g g
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Fordenken. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now