Under the TREC One to Four Family Residential Contract, Paragraph 19 addresses representations. Both buyer and seller make representations including that the contract is not subject to any other agreement. If a party makes a false representation, what is the consequence?
Correct Answer
D) The party making the false representation may be in breach of contract
If a party makes a false representation in the contract, this may constitute a breach of the contract. The non-breaching party may then exercise the default remedies provided in Paragraph 15.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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In a TREC One to Four Family Residential Contract, the parties agree that the seller will provide a residential service contract (home warranty). Under Paragraph 7G, who pays for the residential service contract?
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Under the TREC One to Four Family Residential Contract, what is the purpose of the executed date (also known as the effective date) of the contract?