Massachusetts Real Estate License Practice Test

Which term describes an obligation assumed without explicit terms in a contract?

1. Explicit Warranty

2. Implied Warranty

3. Unilateral Agreement

4. Informed Consent

The correct answer is: Implied Warranty

The term that describes an obligation assumed without explicit terms in a contract is "Implied Warranty." This concept typically arises in situations where the law assumes certain obligations about a product or service, even if those obligations are not directly stated in the contract. For instance, when a purchaser buys a product, there is generally an implied warranty that the product will be fit for use and meet certain standards of quality. Implied warranties are designed to protect consumers, ensuring that they receive a level of assurance, even without a specific agreement being laid out in writing. This is particularly relevant in real estate, where implied warranties may pertain to the condition of a property or the expectation that its systems and structures are functional at the time of sale, even if the seller does not explicitly guarantee them in the contract. The other choices represent different concepts that do not align with the definition of an obligation assumed without explicit terms. Explicit warranties involve clearly stated obligations, unilateral agreements pertain to promises made by one party with no reciprocal obligation, and informed consent refers to an understanding of the risks involved in a decision, typically in medical or legal contexts.