Question 1

Bill and Ted are out drinking and strike up a conversation concerning the sale of Teds Lakehouse property. Bill says he would write a check that evening if Ted agreed to sell him the Lakeside property for $250,000. Ted agrees and they write up an agreement for sale of the Lakeside property including specific elements of the agreement such as the property address, sales price, signatures, and dates. Bill hands Ted a signed check for $250,000. After several hours at the bar Ted drives himself home, and Bill hires a taxi. The following morning Ted finds Bills check for $250,000 and recalls the conversation concerning the sale of his lakeside property and decides he no longer wants to sell it.

Which statement is correct concerning the contract?

A - The contract is void above because Bill was intoxicated.

B - The contract is valid because Ted was able to drive himself home.

C - The contract was not entered into a good faith which makes it unenforceable.

D - The contract is in validated because there was not enough time for consideration.

Question 2

An adjustment rate mortgage may not be good for a buyer

A - Who only intends to own the property for a short time

B - Whose income is likely to increase

C - Who is about to retire

D - Who is receiving his down payment as a gift from parents