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11 Cards in this Set
- Front
- Back
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What are the two types of fiduciary duties owed by the agent to the principal, as discussed in class?
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1. Duty of Loyalty
2. Duty of Care |
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What is meant by Duty of Loyalty?
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- No self dealings
- Can't commingle funds - Can't represent another party in same transaction - Must inform principal of everything - No usurpation of opportunity |
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What is meant by Duty of Care?
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Must exercise the skill and diligence of an average/reasonable agent within the trade.
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What is a "Business Judgment Rule"
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Relieves agents, managers, officers, etc. of liability if advice given was in good faith and with reasonable care.
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What are the ways in which an offer (contract) can be terminated?
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- By Expressly Stated Terms
- Lapes (time, law, terms) - Revoked: any time prior to acceptance - Rejection |
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When accepting a contract, what is the mirror-image rule?
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When an individual accepts the exact terms of the contract. If there are any changes to the contract, then the new terms is considered a new contract, or counter-offer.
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When accepting a contract, what is the mailbox rule?
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Acceptance of the contract occurs upon dispatch of the acceptance...meaning once it is handed to the mailman, unless explicitly stated in the contract.
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Can anyone accept an offer and the terms of a contract?
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No. Only one with the power to accept the offer can.
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What is considered consideration for a contract?
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Both parties have to give something up of value. ie, property for money. The values being given up by each party do not have to be equal. With out giving something up, there is no consideration.
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What is an option contract? Does an option require consideration?
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You purchase the option to buy the property in the future. Basically, you are purchasing time. An option contract usually requires separate consideration since all you are doing is buying time.
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For real estate, which type of contracts must be in writing and signed according to Statute of Frauds?
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1. Real Property
2. More than $500 3. Cannot be completed in less than 1 year. |
