Dick and Jane Have Just Purchased a House and Are

question 25

Essay

Dick and Jane have just purchased a house and are calculating how much money they will need when the closing day rolls around. The purchase price is $200,000. They will make a 20% down payment, and they must pay two points on the loan. Closing costs should be 3% of the purchase price. What is the total dollar amount they will need at closing? (Show all work.)

Recognize the use and implications of liquidated damages clauses and conditions related to contract termination.

Understand the definitions and applications of different types of conditions in contracts (express, implied, precedent, subsequent, concurrent).

Distinguish between complete, substantial, and partial performance within contractual obligations.

Identify the legal implications and outcomes of conditional and unconditional contracts.

---

Definitions:

Age Misrepresentation

The act of deliberately falsifying one's age, usually for the purpose of gaining access to certain privileges or avoiding restrictions.

Insurance Application

The form or process through which a potential insured provides information for an insurance company to evaluate and decide on providing coverage.

Beneficiary Payment

A payment made to a person or entity designated to receive benefits from a contract, such as insurance policy or a will.

Surrender

A mutual agreement between a landlord and a tenant in which the lessee returns his or her interest in the premises to the landlord.