Question

Which of the following is not required for the formation of a contract between two parties?

Offer

Consideration

Acceptance

Risk Acceptance

Question 12

A contract between two parties must always be in writing

True

False

Question 13

Which of the following best gives an example of risk transfer?

A downpayment

A deposit

Aloan

Insurance

Question 14

A contract must ALWAYS have an offer and acceptance

True

False

Question 15

John contacts with Jill to purchase rice from her at $0.25 per kilogram. Jill sells the rice to Sue instead at $0.85 per kilogram. This is potentially an example of

A fixed price contract

Avariable price contract

A high risk contract

Breach of contract

Question 16

In the event John is unable to provide a 20% downpayment for a new house, what could be done to decrease the level of risk

Nothing

Increase the down payment to 25%

Decrease the down payment to 15%

John should acquire mortgage loan

insurance

Question 17

Normally Personal monthly housing costs should not be more than how much of your gross monthly income?

50%

20%

60%

35%

Question 18

Which of the following are instruments are not useful for buying a home?

Home Inspection

Home Buyers' Plan (HBP)

Registered Retirement Savings Plan

(RRSP)

Tax-Free Savings Account (TFSA)

Question 19

Which of the following is not part of the closing costs of the purchase of a new house?

Interest adjustments

Mortgage default insurance premium

Legal costs

House renovation

Question 20

Mortgage loan insurance which is also called mortgage default insurance is designed to protect which party in a mortgage agreement?

The borrower

The lender

Both the buyer and borrower

None of the above

Answer 1

Answer: Risk Acceptance

Explanation: A contract is an agreement between parties, creating mutual obligations that are enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, elements of consideration can be satisfied by a valid substitute. Possible remedies for breach of contract include general damages, consequential damages, reliance damages, and specific performance.