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21 Cards in this Set
- Front
- Back
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contract |
is a voluntary agreement or promise between legally competent parties, supported by legal consideration, to perform (or refrain from performing) some legal act. |
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express contract (express agreement) |
exists when parties state the terms and show their intentions in words. An express contract can be oral or written. |
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implied contract |
the agreement of the parties is demonstrated by their acts and conduct. |
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bilateral contract |
bi means two - must have two promises. In IL, an exclusive right-to-sell listing agreement is considered a bilateral contract. |
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unilateral contract |
uni means one - has only one promise. An open listing is a unilateral contract. |
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executed contract |
one is which all parties have fulfilled their promises; the contract has been performed. |
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executory contract |
exists when one or both parties still have an act to perform. |
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elements of a contract |
offer and acceptance consideration legally competent parties consent legal purpose |
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consideration |
something of legal value offered by one party and accepted by another as an inducement to perform or to refrain from performing some act. |
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valid contract |
meets all the essential elements that make it legally sufficient or enforceable and is binding in a court of law. |
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void contract |
has no legal force or effect because it lacks some or all of the essential elements of a contract. A void contract was never a valid contract. |
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voidable contract |
appears on the surface to valid but may be rescinded or disaffirmed by one or both parties based on legal principle. |
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unenforceable contract |
may seem on the surface to be valid; however, neither party can sue the other to force performance. A contract may be unenforceable because it is not in writing, as may be required under the statute of frauds. |
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asssignment |
is the substitution of parties |
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novation |
the substitutions of the contracts |
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breach on contract |
a violation of any of the terms or conditions of a contract without legal excuse. |
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Buyer remedies |
Suit for specific performance Suit for damages Rescind contract |
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Seller remedies |
Suit for specific performance Suit for damages Declare contract forfeited |
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liquidated damages clause |
permits the seller to keep the earnest money deposit and any other payments received from the buyer as the seller's sole remedy. |
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amendment |
is a change to a contract |
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addendum |
is an addition to a contract |
