In Delaware, what is a 'performance bond' in construction contracts?
Why A bond posted by a contractor guaranteeing they will complete the construction project Is Correct
Answer B: A bond posted by a contractor guaranteeing they will complete the construction project
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
People Also Study
Related Delaware Questions
- Which of the following is considered commingling under Delaware license law?Delaware License Law
- How many hours of pre-license education must a Delaware real estate salesperson candidate complete before sitting for the licensing exam?Delaware License Law
- An owner's title insurance policy in Delaware is typically purchased by:Escrow & Title
- Under Delaware fair housing law, discrimination based on marital status is:Fair Housing
- A Delaware buyer pays $3,500 in discount points on a $350,000 mortgage. How many points did the buyer pay?Real Estate Math
- What does the National Environmental Policy Act (NEPA) require for major federal projects in Delaware?Environmental
- What is 'right-to-farm' protection in Delaware and how does it affect neighboring property owners?Land Use & Zoning
- What is 'private mortgage insurance' (PMI) and when is it typically required in Delaware?Finance
Key Terms to Know
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →