TAB - Tennessee Affiliate Broker Exam

Question 1: A buyer signs a binding agreement and acquires the power to sue the seller, who in turn acquires legal duties toward the buyer. Which of the following best describes a contract?

A legally enforceable agreement

A friendly promise of future help

A statement of present intention

A recorded notice of ownership

Question 2: A licensee debates whether the rules governing a sale of farmland come from the same body of law that governs a sale of farm equipment. Which law primarily governs a contract to sell real estate?

The federal fair housing statute

The statute of limitations

Common law

The Uniform Commercial Code

Question 3: A customer sits down in a barber's chair, accepts a haircut, and by that conduct alone agrees to pay the posted price even though no one mentioned money. Which kind of contract is this?

An implied contract

A unilateral contract

An express contract

A void agreement

Question 4: An instructor lists the requirements every binding agreement must meet before a court will enforce it. All of the following are essential elements of a valid contract EXCEPT which one?

Competent parties

Consideration

A lawful object

A deposit of earnest money

Question 5: A lender promises a struggling borrower that it will hold off on foreclosing for ninety days while the borrower catches up. Which element of a valid contract does the lender's promise supply?

Consideration

Legality of object

Genuine assent

Capacity

Question 6: A self-selling owner tells a buyer the home connects to the city sewer because she honestly believes it does, yet it sits on a septic system. What kind of statement did the owner make?

A unilateral mistake

Fraudulent misrepresentation

An innocent misrepresentation

Puffing

Question 7: A person who has already been adjudicated mentally incompetent by a court, with a conservator appointed, signs a contract to sell a house in Jackson. What is the status of that contract?

Voidable by the seller

Valid and binding

Unenforceable for lack of writing

Void

Question 8: A seventeen-year-old signs a contract to buy a rental duplex from an adult, then wants to back out of the deal a week later. Which best describes the contract's status?

Voidable by the minor

Voidable by the adult seller

Valid and binding on both

Void from the start

Question 9: A licensee compares two failed agreements: one signed under a forged signature, and one that is a valid oral promise to sell land that one party now refuses to honor. How does the law classify them?

Both are valid and fully enforceable

Both are voidable by either party

One is void, the other is unenforceable

Both are void from the start

Question 10: In a signed purchase agreement, the seller promises to convey marketable title and the buyer promises to pay the price, with each able to sue if the other reneges. Which kind of contract is this?

A unilateral contract

An option contract

An implied contract

A bilateral contract

Question 11: A seller promises to pay a commission to any broker who actually procures a buyer, while no broker promises to do anything and the one who performs first earns the fee. Which contract does this describe?

An open listing as a unilateral contract

A net listing as a void contract

A buyer representation as a bilateral contract

An exclusive listing as a bilateral contract

Question 12: Two neighbors reach a purely oral agreement to sell a tract of land, then one party refuses to perform and the other sues. Under the statute of frauds, what is the status of that agreement?

Illegal and therefore unenforceable

Valid but unenforceable

Void and of no legal effect

Voidable by the refusing party

Question 13: A landlord and tenant in Cookeville orally agree to a residential lease running for a full eighteen months. Under the general rule of the statute of frauds, what does this lease require to be enforceable?

Nothing beyond the oral agreement

Acknowledgment before a notary

A writing signed by the party charged

Recording with the register of deeds

Question 14: A seller signed a memorandum agreeing to sell a parcel, but the buyer never signed anything. The seller now refuses to perform. Under the statute of frauds, who may enforce this agreement against the other?

Neither party may enforce it

Either party may enforce it freely

The seller may enforce it against the buyer

The buyer may enforce it against the seller

Question 15: A buyer submits a written offer that states it will remain open for seventy-two hours, but the seller has paid nothing for that promise. Before the seller accepts, may the buyer withdraw the offer?

Yes, because the offeror may revoke before acceptance

Yes, but only with the seller's written consent

No, because the offer guaranteed seventy-two hours

No, because the seller already received it

Question 16: A buyer offers a set price for a Murfreesboro home, and the seller signs the document but writes in a higher price and initials the change. What is the effect on the buyer's original offer?

The original offer is accepted as written

The original offer is terminated

A binding contract forms at the higher price

The offer stays open until its deadline

Question 17: A seller signs an acceptance in her kitchen on Monday night, intending her agent to deliver it Tuesday, but the buyer phones Tuesday morning and revokes first. Has a binding contract formed?

Yes, because the seller intended to deliver it

No, because earnest money was never deposited

No, because acceptance was not yet communicated

Yes, because the seller signed Monday night

Question 18: A prospective buyer makes a written offer on a Chattanooga house, but the seller dies that evening before any acceptance is signed or communicated. What happens to the offer?

The buyer may force the heirs to sell

The estate must accept or reject it

The offer remains open until its deadline

The offer terminates automatically

Question 19: A prospective buyer pays an owner a sum of money for the right, but not the obligation, to purchase a property at a fixed price within a stated period. Which arrangement is this?

An option contract

A right of first refusal

An installment land contract

An executed purchase agreement

Question 20: A tenant holding a properly purchased option to buy a Chattanooga storefront delivers written notice of exercise within the option period at the fixed price. What does the option become at that moment?

A right of first refusal to match offers

A binding bilateral purchase contract

An unenforceable agreement to agree

A revocable offer the owner may withdraw

TAB Tennessee Affiliate Broker Exam - Set 2 - Part 1