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53 Cards in this Set

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  • Back
Does a contract have to be written to be valid?
No, but there are exceptions.
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
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.
EXECUTORY
EXPRESS
BI-LATERAL
When a person is not of sound mind, but not declared insane, or wholly without understanding, contracts to buy property, the contract is likely ______.
VOIDABLE ( BY THE INCOMPETENT PARTY)
Mutuality in a contract would ordinarily be indicated by ___ and ___.
OFFER
ACCEPTANCE
Once _____ has been made, an offer cannot be withdrawn.
ACCEPTANCE
Revocation of an offer takes place once it is _______.
RECEIVED
Acceptance of an offer takes place upon ________.
MAILING ( OR FAX OR E-MAIL)
If Albert knew of fraud about a property's income, but completed the purchase anyway, what can he do?
NOTHING.
HE CANNOT VOID OR COLLECT DAMAGES
A promise for a promise is a _______contract.
BI-LATERAL
Most real estate contracts are what type of contracts?
BI-LATERAL
A Promise that is followed by an act is a ________ contract.
UNILATERAL
For a contract to be valid it must contain what five elements?
1) OFFER
2) ACCEPTANCE
3) LEGALITY
4) CONSIDERATION
5) COMPETENCY OF BOTH PARTIES
In a contract with a minor, who has the right to void the contract?
THE MINOR
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
In court, _____ take priority over numbers in settling a confusion.
WORDS...

ie. ONE HUNDRED THOUSAND VS 100,000
An agreement whereby one party to a contract is discharged and another party becomes obligated is a _______.
NOVATION
____________ is not an equitable remedy.
COMPENSATORY DAMAGES
Forfeiture of agreed damages in a contract is known as ________ ________.
LIQUIDATED DAMAGES
The maximum percentage in a liquaded damage claim is _____.
3% OF THE CONTRACT

IE: 700,000 HOUSE= 21,000
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.
SPECIFIC PERFORMANCE
A written contract is required in what contracts? (5)
1) REAL ESTATE
2) CONTRACTS OVER ONE YEAR (366 DAYS+)
3) SALES OVER 750.00
4) CONTRACTS OF DEBT
5) CONTRACTS OF ADMINISTRATORS
An offer must contain what minimum information?
SUBJECT/DESCRIPTION
TIME PERIOD
CONSIDERATION
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?
NO
AN ADVERTISEMENT IS ONLY AN INVITATION TO NEGOTIATE.
If a counteroffer is given to the offer, is the buyer bound to the offer?
NO
A NEW OFFER HAS BEEN MADE
If a home burns down before close of escrow what happens?
THE OFFER CAN BE REVOKED AND THE BUYER IS NOT OBLIGATED TO PURCHASE THE PROPERTY.
The passage of time can make a valid contract _________.
UNENFORCEABLE
In California, the statute of limitations for verbal contracts is ___years.
TWO
Losing a right because of failure to assert in a timely manner is known as _______.
LACHES
What would the court do in the case of a contract with legality and illegality?
THEY WOULD BASE THE JUDGMENT OF THE LEGAL INTERPRETATION.
_______ is the intentional misrepresentation of facts.
FRAUD
Only who can withdraw an offer on basis of fraud?
THE INJURED PARTY
___________ is a civil wrong that is not fraud because it is not intentional.
MISREPRESENTATION
_________ is usually known as force.
DURESS
IMPOSSIBILITY OF PERFORMANCE


VALID OR DIS-CHARGEABLE
When it is impossible to perform the act intended for the property the contract can be discharged.
___________ damages are actual damages lost.
COMPENSATORY
________ Damages are damages above the actual damages lost.
PUNITIVE ( PUNISH)
__________ damages are minor, but awarded when no actual damages are found.
NOMINAL
_________ takes place when a contract has a error of intent, and needs to be re-written to show the true intent.
REFORMATION
_________ is a court order to cease an activity to prevent future harm.
INJUNCTION
__________ is a retroactive cancellation of a contract.
RECISSION
__________ is giving up a right.
WAIVER
________________ states that only the written contract states the facts and that no verbal evidence will prevail.
PAROL EVIDENCE RULE
A verbal agreement on a Realtor commission would be _____________.
UNENFORCEABLE: MUST BE IN WRITING
A valid LISTING agreement must contain what about the propery?
SUBJECT MATTER: LOCATION/DESCRIPTION/ADDRESS/ ECT.
The rate of commission is set by whom?
THE PARTIES.
COMMISSION IS NEGOTIABLE AND NOT SET
Commission is ordinarily earned by a broker when?
WHEN A READY, WILLING, ABLE BUYER IS FOUND.
Procuring the buyer is most important in ________ listings.
OPEN
In a __________ listing, a broker is the listed agent, but the owner can also sell the property without a commission.
EXCLUSIVE AGENCY
Most real estate agents want a ____________________ listing which grants them a commission on anyone who sells the property.
EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL
Liquidated Damages does not apply in what type of listings?
COMMERCIAL: OR RESIDENTIAL OVER 5 UNITS
"AS IS" only applies to what defects?
VISIBLE
If a time period is not specified in a real estate acceptance, what would be the time line?
REASONABLE AMOUNT OF TIME/