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33 Cards in this Set
- Front
- Back
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What is a contract |
A voluntary agreement or promise between legally competent parties, supported by legal consideration to perform some legal act. |
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What is a contract with intentions in words? |
Express contract, either oral or written |
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Certain types of contracts must be what to be enforceable in court? |
Statute of frauds |
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What is an agreement demonstrated by acts and conduct? |
Implied contract |
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The illinois frauds act requires that any contracts for the sale of land, or for leases that will not be fulfilled within one year from the date entered into must be what?
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In writing to be enforceable in court |
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What is a contract where both parties agree to do something? |
Bilateral contract |
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What is a contract with one-sided agreement? |
Unilateral contract. |
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What is a contract that all parties have fulfilled their promises and contract is done? |
Executed Contract |
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What is a contract where acts still must be performed? |
Executory Contract |
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What are the elements of a contract? |
Offer and acceptance Consideration Legally competent parties consent legal purpose |
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What does offer and acceptance (Mutual Assent) require? |
There must be an offer by one party that is accepted by the other. |
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How do offers work? |
The offering person is the offeror, recipient is the offeree. Offer is a promise made with the intention that the offerer will be bound to the terms if accepted. Proposing any deviation constitutes a deviation and a new offer is done. Counter offers can happen or a party can walk away. Any offer or counter can be withdrawn at any time before acceptance |
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What is something of legal value offered by one party and accepted by another as an inducement to perform or refrain from performing some act? |
Consideration Must be good and valuable between parties. |
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What is the age of contractual capacity in Illinois? |
18 |
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What is a contract that meets all the essential elements to make it legally sufficient or enforceable and is binding in the court of law? |
A valid contract |
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What is a contract with no legal force because it lacks the essential elements of a contact? |
A void contract |
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What is a contract that appears to be valid but can be disaffirmed off a legal principle. |
Voidable contract |
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What is it called if a person fails to perform on time and is held liable for breach of contract? |
Time is of the essence |
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What is a transfer of rights or duties under a contract. Rights may be assigned to a third party. |
Assignment |
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What is substitution of a new contract for an existing contract? |
Novation Agreement may be between the same parties, or a new party may be substituted for either. |
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What is the statute of limitations for oral contracts and written contracts? |
Five Years Or Ten years |
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What are some reasons that contracts may be discharged or terminated? |
Partial performance Substantial Performance Impossibility of Performance Mutual Agreement Operation of the law Recission |
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What are some written agreements usually used by brokers and managing brokers? |
Listing agreements Real estate sales contracts Options agreements Escrow agreements Lease land contracts |
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What are additional clauses or agreements called? |
Riders or addenda |
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The illinois Supreme Court Decision in the case of Chicago Bar Association, et al, v. Quinlan and Tyson placed what restriction on contracts? |
Licensees are only authorized to fill in blanks on printed forms customarily used. Usually approved by local associations of REALTORS |
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When can the earnest money be delivered to the listing sponsoring broker? |
When there is a contract |
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To release earnest money in illinois for any reason what is needed? |
Signatures of both parties |
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When a buyer signs a contract to purchase real estate, what do they receive? |
Equitable title This is the interest in the land |
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To avoid a lawsuit if one party breaches the contract, the parties may agree on a certain amount of money that will compensate the non breaching party. What is this called? |
Liquidated damages |
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Additional conditions that must be satisfied before a sales contract is fully enforced is called what? |
Contingencies Needs specific actions necessary to satisfy Time frame within the actions must occur Who is responsible for paying any costs involved |
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What are some common contingencies |
Mortgage contingency Inspection contingency Property Sale Contingency Escape Clause |
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What is a contract by which an optioner (generally an owner) gives an optionee (prospective purchasor or lessee) the right to buy or lease the owner's property at a fixed price within a certain period. |
Option |
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What is a land contract |
Under a typical land contract the seller or vendor retains legal title. The buyer takes possession and gets equitable title to the property. Buyer agrees to give the seller a down payment and pay regular monthly installments of P and I |
