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53 Cards in this Set
- Front
- Back
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Does a contract have to be written to be valid?
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No, but there are exceptions.
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A ______ contract is one that though not specific, is understood between both parties.
" If I cut your hair at the salon it is assumed you will pay me" |
IMPLIED CONTRACT
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A written contract whereby the seller agrees to convey at an agreed price at a definite time in the future, where the buyer agrees to those terms would be ______, _____, _______ contract.
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EXECUTORY
EXPRESS BI-LATERAL |
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When a person is not of sound mind, but not declared insane, or wholly without understanding, contracts to buy property, the contract is likely ______.
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VOIDABLE ( BY THE INCOMPETENT PARTY)
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Mutuality in a contract would ordinarily be indicated by ___ and ___.
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OFFER
ACCEPTANCE |
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Once _____ has been made, an offer cannot be withdrawn.
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ACCEPTANCE
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Revocation of an offer takes place once it is _______.
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RECEIVED
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Acceptance of an offer takes place upon ________.
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MAILING ( OR FAX OR E-MAIL)
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If Albert knew of fraud about a property's income, but completed the purchase anyway, what can he do?
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NOTHING.
HE CANNOT VOID OR COLLECT DAMAGES |
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A promise for a promise is a _______contract.
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BI-LATERAL
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Most real estate contracts are what type of contracts?
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BI-LATERAL
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A Promise that is followed by an act is a ________ contract.
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UNILATERAL
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For a contract to be valid it must contain what five elements?
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1) OFFER
2) ACCEPTANCE 3) LEGALITY 4) CONSIDERATION 5) COMPETENCY OF BOTH PARTIES |
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In a contract with a minor, who has the right to void the contract?
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THE MINOR
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A person pays 1,000 for the option to buy property.
1) Is he bound to purchase the property? 2) Will he receive the 1000 back? |
1) NO IT IS ONLY THE OPTION TO BUY
2) NO, THE CONSIDERATION IS LOST |
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In court, _____ take priority over numbers in settling a confusion.
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WORDS...
ie. ONE HUNDRED THOUSAND VS 100,000 |
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An agreement whereby one party to a contract is discharged and another party becomes obligated is a _______.
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NOVATION
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____________ is not an equitable remedy.
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COMPENSATORY DAMAGES
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Forfeiture of agreed damages in a contract is known as ________ ________.
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LIQUIDATED DAMAGES
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The maximum percentage in a liquaded damage claim is _____.
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3% OF THE CONTRACT
IE: 700,000 HOUSE= 21,000 |
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If I am buying a unique property and the seller tries to cancel the contract, I may go for ____ _____ which forces the court to continue the sell.
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SPECIFIC PERFORMANCE
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A written contract is required in what contracts? (5)
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1) REAL ESTATE
2) CONTRACTS OVER ONE YEAR (366 DAYS+) 3) SALES OVER 750.00 4) CONTRACTS OF DEBT 5) CONTRACTS OF ADMINISTRATORS |
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An offer must contain what minimum information?
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SUBJECT/DESCRIPTION
TIME PERIOD CONSIDERATION |
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A buyer sees an advertisement for a home listed at 650,000. He comes in with a full offer, is the seller obligated to sell based on the advertisement? Why?
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NO
AN ADVERTISEMENT IS ONLY AN INVITATION TO NEGOTIATE. |
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If a counteroffer is given to the offer, is the buyer bound to the offer?
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NO
A NEW OFFER HAS BEEN MADE |
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If a home burns down before close of escrow what happens?
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THE OFFER CAN BE REVOKED AND THE BUYER IS NOT OBLIGATED TO PURCHASE THE PROPERTY.
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The passage of time can make a valid contract _________.
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UNENFORCEABLE
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In California, the statute of limitations for verbal contracts is ___years.
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TWO
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Losing a right because of failure to assert in a timely manner is known as _______.
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LACHES
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What would the court do in the case of a contract with legality and illegality?
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THEY WOULD BASE THE JUDGMENT OF THE LEGAL INTERPRETATION.
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_______ is the intentional misrepresentation of facts.
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FRAUD
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Only who can withdraw an offer on basis of fraud?
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THE INJURED PARTY
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___________ is a civil wrong that is not fraud because it is not intentional.
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MISREPRESENTATION
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_________ is usually known as force.
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DURESS
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IMPOSSIBILITY OF PERFORMANCE
VALID OR DIS-CHARGEABLE |
When it is impossible to perform the act intended for the property the contract can be discharged.
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___________ damages are actual damages lost.
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COMPENSATORY
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________ Damages are damages above the actual damages lost.
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PUNITIVE ( PUNISH)
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__________ damages are minor, but awarded when no actual damages are found.
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NOMINAL
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_________ takes place when a contract has a error of intent, and needs to be re-written to show the true intent.
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REFORMATION
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_________ is a court order to cease an activity to prevent future harm.
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INJUNCTION
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__________ is a retroactive cancellation of a contract.
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RECISSION
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__________ is giving up a right.
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WAIVER
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________________ states that only the written contract states the facts and that no verbal evidence will prevail.
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PAROL EVIDENCE RULE
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A verbal agreement on a Realtor commission would be _____________.
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UNENFORCEABLE: MUST BE IN WRITING
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A valid LISTING agreement must contain what about the propery?
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SUBJECT MATTER: LOCATION/DESCRIPTION/ADDRESS/ ECT.
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The rate of commission is set by whom?
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THE PARTIES.
COMMISSION IS NEGOTIABLE AND NOT SET |
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Commission is ordinarily earned by a broker when?
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WHEN A READY, WILLING, ABLE BUYER IS FOUND.
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Procuring the buyer is most important in ________ listings.
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OPEN
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In a __________ listing, a broker is the listed agent, but the owner can also sell the property without a commission.
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EXCLUSIVE AGENCY
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Most real estate agents want a ____________________ listing which grants them a commission on anyone who sells the property.
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EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL
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Liquidated Damages does not apply in what type of listings?
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COMMERCIAL: OR RESIDENTIAL OVER 5 UNITS
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"AS IS" only applies to what defects?
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VISIBLE
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If a time period is not specified in a real estate acceptance, what would be the time line?
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REASONABLE AMOUNT OF TIME/
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