FINC 4673 LAW OF CONTRACT
EXAM NEW AND LATEST R EVIEW
Question : A buyer defaults on a contract, and the seller
chooses to receive the earnest money. This is an example
of:
a) A suit for specific performance
b) Money damages
c) Liquidated damages
d) Mutual rescission
Correct answer: Liquidated Damages
Question : In a residential lease with a "right of first
refusal" provision:
a) The price is set when the lease agreement is
negotiated
b) The tenant has promised to buy the property
c) The TREC promulgated form must be used
d) The tenant has the right to match or better any offer
the landlord receives to prevent the property from being sold to someone else
Correct answer: d) The tenant has the right to match or
better any offer the landlord receives to prevent the property from being sold to someone else
Question : Bill is purchasing a property from Sally. All
contingencies have been met, and the parties are ready to close. One day before closing, Sally announces that she has changed her mind and is going to keep the property.Bill is determined to complete the purchase and acquire the property. The only default remedy in the contract that could result in Bill acquiring the property is__
a) Monetary damages
b) Liquidated damages
c) Punitive damages
d) Specific performance
Correct answer: d) Specific performance
Question : Elmer Fleckenfleck, an agent with After
Hours Realty, was preparing a contract. The seller told Elmer that he wanted to stay in the property at least a week after closing. Elmer said that would be no problem and entered the following text to Paragraph 11, "Seller and Buyer agree that Seller will remain in the Property for 7 days after closing and funding." In this case, Elmer
has:
a) Properly represented the interests of both parties
b) Completed the contract according to established
regulations and procedures
c) Engaged in the unlawful practice of law
d) Violated numerous provisions of RESPA
Correct answer: c) Engaged in the unlawful practice of
law
Question : Texas Veteran's Land Board's Housing
Assistance Program loans can be:
a) Used only be disabled Texas veterans
b) Used to purchase either commercial or residential
property
c) Used only for VA-guaranteed loans
d) Used for FHA, VA, or conventional loans
Correct answer: d) Used with FHA, VA, or conventional
loans
Question : The four economic characteristics of land are
scarcity, fixity, situs, and ___.
a) Modification
b) Indestructibility
c) Non-homogeneity
d) Immobility
Correct answer: a) Modification
Question : Joe is an agent at Tried and True Realty. He
gets $150, 000 offer on a property that is listed for $199,500. In a recent phone conversation, the seller told Hoe he would accept no less than $185,000 for the
property. Knowing the seller's "bottom line," what should Joe do with the offer?
a) Joe should notify the buyer that he will not present the
offer because it is too low.
b) Joe should hold on to the offer for several days just to
see if a better one comes in.
c) Joe should call the buyer and insist that a more
satisfactory offer be presented.
d) Joe should present the offer to the seller.
Correct answer: d) Joe should present the offer to the
seller.
Question : An abstract of title is a(n) ___.
a) Title commitment
b) Attorney's opinion of title
c) Complete written history of title
d) Summary of the current conditions of the title
Correct answer: c) Complete written history of title
Question : The Buyer and Seller Temporary Residential
Lease forms are good for any period up to ___.
- 14 days
- 30 days
- 60 days
- 90 days