Modern Real Estate In Nc Ch 8

Front 1

assignment

Back 1

The transfer to another party in writing of rights or interest in a bond, a mortgage, a lease, or another instrument compensatory

Front 2

Compensatory damages

Back 2

Money damages awarded to the injured party to compensate them for the breach of contract, but not to punish the breaching party

Front 3

Consequential damages

Back 3

Award of special damages if the breaching party entered the contract with plans to breach; injured party may sue for lost profits

Front 4

Consideration

Back 4

1. That received by the grantor in exchange for a deed 2. Something of value that induces a person to enter into a legally binding contract

Front 5

Contract

Back 5

A legally enforceable promise or set of promises between legally competent parties that must be performed for consideration. If a breach of the promise occurs, the law provides remedy. A contract may be either unilateral, by which one party is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed .

Front 6

Earnest money deposit

Back 6

Money deposited by the buyer under the terms of a contract, to be forfeited if the buyer defaults, but applied to the purchase price if sale is closed.

Front 7

Earnest money deposit

Back 7

Money deposited by the buyer under the terms of a contract, to be forfeited if the buyer defaults, but applied to the purchase price if sale is closed.

Front 8

Specific performance

Back 8

A lawsuit that requires the parties to perform contract obligations

Front 9

Statute of frauds

Back 9

A state law that requires that certain instruments that convey interest in real estate be in writing to be legally enforceable, such as deeds, real estate sales contracts, and certain leases.

Front 10

Voidable contract

Back 10

Seems to be valid on surface, but may be rejected or disaffirmed by one or both parties. Ex. Minor enters into contract

Front 11

Void contract

Back 11

Has no legal force or effect because it doesn't meet essential elements of a contract

Front 12

Four elements of a contract

Back 12

Legally competent parties
Mutual assent or deliberate agreement
Legality of object
Consideration

Front 13

Express contract

Back 13

An oral or written contract in which both parties state the contract's terms and express their intentions in words.

Front 14

Implied contract

Back 14

A contract in which the agreement of the parties is demonstrated by their conduct- example: sitting down and eating in restaurant implies payment for food.

Front 15

Legality of object

Back 15

The purpose of a legally enforceable contract cannot be for illegal actions or acts against public policy

Front 16

Liquidated damages

Back 16

An amount predetermined by the parties to a contract as a compensation to an injured party if the other party breaches the contract

Front 17

Meeting of the minds

Back 17

Mutual consent- a deliberate agreement between parties; offer and acceptance. A requirement of a legally enforceable contract.

Front 18

Novation

Back 18

Substituting a new contract for an old one or substituting new parties to an existing contract

Front 19

Parol evidence rule

Back 19

A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be varied or contradicted by prior or contemporaneous oral or written negotiations

Front 20

Reality of consent

Back 20

If misrepresentation, fraud, mistake of fact, undue influence or duress are absent in contract formation, contract is good

Front 21

Rescission

Back 21

Cancellation by one or both parties