Law of Contracts Flashcards
6 cards from real BC Real Estate Trading Services Course practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Law of Contracts flashcards as text
For a real estate contract to be legally enforceable in BC, which of the following is NOT a required element?
Answer: Witnessed signatures from both parties
While witnessed signatures add reliability, they are not a required element for a contract's basic enforceability. The essential elements are offer, acceptance, consideration, capacity, and legality of purpose.
A buyer submits an offer with conditions to be removed within 7 days. Before the conditions are removed, this contract is best described as:
Answer: A conditional contract — binding on both parties but subject to the conditions being satisfied
A conditional offer creates a binding contract between the parties, but performance is contingent on the conditions being satisfied or waived within the specified time. Neither party can walk away just because conditions haven't been removed yet.
In BC, a real estate contract that is 'voidable' means:
Answer: One party has the right to rescind (cancel) the contract, but it remains valid unless they exercise that right
A voidable contract is valid and binding unless and until the party with the right to void it chooses to do so. Common grounds for voidability include misrepresentation, duress, undue influence, or incapacity.
When is 'time is of the essence' relevant in a BC real estate purchase contract?
Answer: It makes specified deadlines strict — missing a deadline can result in the party being in default and losing their rights under the contract
When a contract states 'time is of the essence,' all specified dates and deadlines are strict. A party who misses a deadline — such as the condition removal date or completion date — may be considered in default and lose their contractual rights.
A counteroffer by the seller to a buyer's initial offer has which legal effect?
Answer: It rejects the original offer and creates a new offer from the seller to the buyer
A counteroffer operates as a rejection of the original offer and simultaneously creates a new offer (from seller to buyer) on modified terms. The original offer is extinguished and cannot be accepted after a counteroffer.
Under BC's Property Transfer Tax Act, which statement about PTT (Property Transfer Tax) is CORRECT?
Answer: PTT is a tax payable by the buyer based on the fair market value of the property being transferred
Property Transfer Tax in BC is a buyer's tax based on the fair market value of the property transferred. It is calculated on a sliding scale: 1% on the first $200,000, 2% on $200,001 to $2,000,000, and 3% on amounts above $2,000,000.