Georgia Real Estate Salesperson Exam — All Questions
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A contract in which one party has begun performance but obligations remain on both sides is best described as:
- a.An executory contract✓
- b.An executed contract
- c.A void contract
- d.A unilateral contract
An executory contract is one that is not yet fully performed, with obligations remaining. Once all parties have completed performance, the contract becomes executed.
A seller receives an offer and returns it with a higher price. This response is legally a:
- a.Valid acceptance
- b.Counteroffer✓
- c.Contingency
- d.Novation
Changing any material term of an offer creates a counteroffer, which rejects the original offer and creates a new offer the original offeror may accept or reject. No contract exists until an offer is accepted without changes.
Earnest money in a purchase contract primarily serves to:
- a.Pay the listing agent's commission
- b.Replace the down payment entirely
- c.Show the buyer's good-faith commitment to the purchase✓
- d.Guarantee the seller will accept the offer
Earnest money demonstrates the buyer's good-faith intent to complete the purchase and is typically applied to the purchase price or closing costs at closing. If the buyer defaults without a valid contingency, the seller may be entitled to it.
A contract signed by a minor is generally:
- a.Void from the start
- b.Automatically enforceable
- c.Illegal
- d.Voidable by the minor✓
A contract with a minor is generally voidable at the minor's option because minors lack full contractual capacity. The adult party is bound unless the minor chooses to disaffirm the contract.