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41 Cards in this Set
- Front
- Back
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Definition of Contract
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An agreement between two parties
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A contract can be an agreement to do something or not to do something:
True or False? |
Answer: True
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Definition of Contract for Forbearance
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An agreement NOT to do something
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Contracts can be written or oral:
True or False? |
Answer: True
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An oral contract is called________?
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Answer: PAROL contract
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In real estate, some contracts can be oral, while others must be_____________?
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Answer: written
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Contracts can be categorized in several ways:
I. expressed vs. implied II. valid vs. void and voidable III. bilateral vs. unilateral IV. executed vs. executory |
Answer: All the above
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Definition of a Expressed Contract
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One in which the intent of the parties is stated (expressed) in the contract itself.
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Expressed contracts can:
I. be either written or oral II. be a real estate sales contract III. be a sales bonus offered to salespersons by a company IV. arise from the stated intent of the parties IV. |
Answer: All the above
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A contract to sell real estate is an ____________ contract since the intent of the seller to sell and the buyer to buy is stated in the contract.
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Answer: Expressed
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A verbal lease on an apartment for 3 months is an ___________ contract since the parties verbally state their intent.
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Answer: Expressed
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Definition of an Implied Contract
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One in which the intent of the parties is not stated but is indicated by their actions
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If you order food in a restaurant, your actions (ordering the food) imply a contract on your part to pay. This is an example of an ______________ Contract
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Answer: Implied
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The acceptance of the order by the waiter implies that the restaurant will deliver food in return for your money. This is an example of an ______________ Contract
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Answer: Implied
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From a legal standpoint, what three types of contracts are there
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Answer: Valid, void, and voidable
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Definition of a Valid Contract
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One that is legally sufficient and meets all the requirements of the law
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A valid contract can be either _________________ or _________________.
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Answer: enforceable or unenforceable
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Definition of Enforceable
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A valid contract that can be enforced in a court of law
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Definition of Unenforceable
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A contract that cannot be enforced in a court of law
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An unenforceable contract is valid until challenged in court.
True or False? |
Answer: True
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An unenforceable contract is usually one that is valid but is NOT WRITTEN, and therefore cannot be enforced in court.
True or False? |
Answer: True
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In real estate, some contracts must be written to be enforceable, while some need not be.
True or False? |
Answer: True
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In many states, if a contract for the sale of real property is ORAL, and otherwise valid, then the contract is valid but unenforceable.
True or False? |
Answer: True
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A valid contract is voidable but has not yet been rescinded.
True or False? |
Answer: True
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Definition of Void Contract
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One that is not recognized legally and has no legal effect.
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A void contract is:
I. not binding on either party II. not a contract at all |
Answer: I and II
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Definition of Voidable Contract
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One that is capable of being voided by ONE of the parties to the contract.
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A voidable contract:
I. is binding on one party to the contract only II. is VALID until action is taken by one party to make it void III. can be rescinded by one party |
Answer: I, II, and III
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Contracts are said to be either:
A) Bilateral B) Unilateral |
Answer: Both
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Definition of Bilateral Contract
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One in which BOTH parties promise to give up something
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During a bilateral contract a promise is exchanged for a___________.
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Answer: Promise
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In a real estate sales contract both parties promise to give up something. The seller promises to give his/her home to the buyer. In return, the buyer promises to give money to the seller. This is considered to be a _____________contract.
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Answer: Bilateral
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Definition of Unilateral Contract
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One in which only ONE party promises to give up something
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During a unilateral contract a promise is exchanged for ___________.
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Answer: some act or performance by the other party.
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When a sales bonus is offered to a salesperson, the company promises to pay a bonus if sales targets are met, but the salesperson does not promise to meet those goals. This is considered to be an _____________ contract.
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Answer: Unilateral
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Contracts are said to be either:
A) Executed B) Executory |
Answer: Both
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Definition of Executed Contract
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One in which all requirements of the contract have been fulfilled and the parties have done what they agreed to do in the contract
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When a real estate sales contract is "closed" or "settled," is is _____________.
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Answer: Executed
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Don't confuse an "executed contract" with "executing a document." The process of signing the document simply refers to ____________.
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Answer: Executing a document
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Definition of Executory Contract
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One in which some or all requirements have not yet been completed
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A real estate contract which has been signed by both parties but has not "closed" is an ______________ contract, because all the requirements of the contract have not been completed (e.g. transfer of title, payment of purchase price, etc.).
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Answer: executory
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