1. A legally enforceable agreement is written up between the buyer and seller. The two parties promise to cooperate and do everything they can to perform on their promise. The buyer promises to do everything to acquire the loan and the seller promises to do everything to make the house qualify to sell. This is known as
A. A bilateral contract
B. A unilateral contract
C. Escrow Agreement
D. An option contract
2. Does the term ‘valuable consideration” mean only a money consideration?
A. Yes, at least 5% of the purchase price must be put down as earnest money
B. Yes, but the amount is always negotiable between the seller and the buyer
C. No, anything of value can be put down as earnest money as long as both parties agree to it.
D. Yes because the more money that is put down by the buyer, the more likely the seller will accept his offer.
3. When a buyer or seller default on the contract, what steps could each take?
A. Liquidated damages C. Could agree to cancel without damages
B. Specific performance D. All of the above