California Real Estate Salesperson Exam Practice - Quesiton 20

Question

Most real estate contracts are in writing on preprinted forms. Some of the terms of these contracts must be written in and other parts are preprinted. In the interpretation of such contracts:

Selections

A. Printed parts take precedence over the written parts

B. The written parts and the printed parts are given equal consideration

C. The written parts take precedence over the printed parts

D. If any conflict exists between the written and the printed part, the contract is void

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Answer: C

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5 Keys Summary

• The written parts take precedence over the printed parts in the interpretation of real estate contracts.

• Handwritten or specifically typed additions to a standardized contract are legally considered more reliable than the pre-printed language.

• This means that specific, custom terms added by the parties will override conflicting preprinted clauses on the form.

• This standard principle of contract law must be used when resolving disputes regarding contradictory language that may arise between the printed and written portions of the agreement.

• If later-drafted conditions (such as handwritten ones) conflict with the general standard printed terms, the later-drafted conditions typically take precedence

Explanations

• In the interpretation of real estate contracts, written parts take precedence over the printed parts. This means that any handwritten or specifically typed additions to a preprinted form will override conflicting preprinted clauses.
• Any handwritten portion of a contract is considered more reliable than a pre-printed portion, especially if future disputes arise between the parties.
• Similarly, if later-drafted conditions (like those in an addendum) conflict with standard printed terms, the addendum's conditions typically take precedence.

Concepts Definitions

• Contract Interpretation: The process of determining the meaning and intent of the terms within a contract.
• Written vs. Printed Terms: A principle of contract law stating that specific terms that are written or typed into a contract supersede general preprinted terms if there is a conflict.
• Statute of Frauds: A legal principle requiring certain types of contracts, including those for the sale or lease of real property for more than one year, to be in writing to be enforceable. This ensures clarity and reduces disputes.
• Addendum/Amendment: A modification to a contract. An addendum is a modification before the contract is mutually accepted, while an amendment reflects changes made after approval and during escrow. These often contain written or typed terms that may supersede preprinted ones.