Ohio Real Estate Salesperson Exam — All Questions
← Back to practice3 questions
Time is of the essence in a contract means that:
- a.The contract has no deadline
- b.Performance must occur by the stated dates or a party is in breach✓
- c.Either party may extend deadlines freely
- d.The contract expires after one year automatically
A 'time is of the essence' clause makes the stated deadlines binding, so failing to perform on time is a breach. Without such a clause, courts may allow reasonable extensions.
Which of the following would make a real estate contract void rather than merely voidable?
- a.A minor signed it
- b.One party was defrauded
- c.One party was under duress
- d.The purpose of the contract is illegal✓
A contract for an illegal purpose is void from the outset because courts will not enforce an unlawful agreement. Contracts involving a minor, fraud, or duress are typically voidable at the option of the injured or protected party.
The assignment of a contract generally means that:
- a.One party transfers its rights under the contract to another party✓
- b.The contract is canceled
- c.A new contract replaces the old one for all parties
- d.The seller keeps all obligations and rights
An assignment transfers a party's rights (and often duties) under a contract to a third party, the assignee. Unlike novation, an assignment does not automatically release the original party from liability unless agreed.