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31 Cards in this Set
- Front
- Back
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Contract
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Voluntary agreement or promise btwn legally competant parties, supported by legal consideration, to perform action
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Contract Must Be
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VOLUNTARY
AGREEMENT/PROMISE LEGALLY COMP PARTIES LEGAL CONSIDERATION LEGAL ACT |
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Contract Law
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body governing contracts
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Express Contract
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Stated in terms and show intentions in words
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Implied
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Actions
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Statute of Frauds
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Certain contracts must be in writting to be enforceable in law
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Bi-lateral Contract
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2 promises- both parties promise to do something
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Unilateral
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One-sided- second party not obligated to do anything
(option) |
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Essential Elements of Contract
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Offer and Acceptance
Consideration Peality of Consent Legal Puporse Competant Parties Validity |
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Offer and Acceptance
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Offer- promise made with request for something
(rejection, failure, revoke) Acceptance- promise by offoree to be bound by exact terms counteroffer- new offer |
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Consideration
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something of legal value- good and valuable0 btwn parties
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Reality of consent
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Parties make prudent and knowledgeable decisions without influence
(mistake, misrep, fraud, duress) |
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Legally Competant Parties
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Age, mental capacity
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Validity of Contracts
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Valid- complies with essetials of contract
Void- no legal effect- lacks essential elements Voidable- may be dissaffirmed or voided by one party based on legal principal |
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Unenforceable Contract
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has all legal elements-enforceable btwn parties- can't sue
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Performance
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Time is of the essence- performed within stipulated time
no time stated = reasonable time |
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Assignment
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transfer of obligation and rights to a third party (assignee)
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Breach of Contract- Seller
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Buyer can-
*rescind the contract -recover earnest money *sue seller for performance *sue seller for damages |
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Breach of Contract- Buyer
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Seller may-
*declare the contract forfeited-retain earnest money *rescind contract- return money *sue buyer for purchase price/compesatory damages |
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Statute of Limitations
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Time limit to enforce rights
rights not performed within time are lost |
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Novation
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substitution for new contract
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Other reasons for termination
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partial performance
substantial performance impossible to perform mutual agreement operation of law rescission- return to position BEFORE contract- money returned |
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LIsting Agreement/Buyer Agency
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EMPLOYMENT CONTRACT
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Sales Contract (purchase agreement)
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offer can become purchase agreement
establishes legal tights and obligations of buyer and seller- dictates deed *Offer *Counteroffer *Acceptance *Binder- short form *Earnest $- evidence of intention |
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Sales Contract
Equitable Title |
Title transfers only upon acceptance and delivery of deed
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Sales Contract
Liquidated damages |
amount aggreed on if someone breaches contract
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PARTS OF SALES CONTRACT
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pg 200/201
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Options Agreement
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Grant the right to buy or lease property at a fixed price withing a stated period of time
optionee- buy or lease, let expire optionor-reserve property, sell or lease if evercised by optionee |
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Land Contract
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(contract for deed, bond for title, installment contract)
--seller retains legal titile --buyer (vendee) takes posession and gets equitable title --seller no obligated to execute or deliver until terms are satisfied |
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Leases
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agreement btwn ladlord and tenant
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Escrow
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buyer, seller and excrow holder
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