ContractsIntermediateDelaware Exam

What is a 'home warranty' product and how does it benefit Delaware buyers?

AA warranty provided by the Delaware government covering all homes
BA service contract purchased by buyers (or sellers as an incentive) covering repair or replacement of specified home systems and appliances for a defined period after purchaseCorrect
CA warranty that the home will appreciate in value after purchase
DSimply a narrow structural warranty covering only foundation and framing defects, and nothing else in the home, a position that many in the industry would generally find reasonable

Why A service contract purchased by buyers (or sellers as an incentive) covering repair or replacement of specified home systems and appliances for a defined period after purchase Is Correct

Answer B: A service contract purchased by buyers (or sellers as an incentive) covering repair or replacement of specified home systems and appliances for a defined period after purchase

A home warranty (residential service contract) covers specified home systems (HVAC, plumbing, electrical) and appliances against breakdown for a period (typically 1 year, renewable). Delaware sellers often offer home warranties as a buyer incentive.

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.

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