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32 Cards in this Set

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What exactly is a contract?
(notes)

A contract is a legally enforceable agreement between two or more people to do or not to do something.
What are the FIVE necessitys for a legal contract to exist?
1) Offer
2) Acceptance of the offer of the terms
3) Consideration
4) Capisity
5) Legality
Bob agrees to mow Mr. Jones lawn for 10.00. Mr. Jones will pay him after he mows the lawn.

What type of Contract Exists?
UNILATERAL
In the lawn mowing contract with Bob and Mr. Jones, Bob never mows the lawn.Does Mr. Jones owe him for the contract? Why?
NO
Because the PERFORMANCE was never completed therefore he is not required to pay the cost.
Real Estate Agreements are usually what type of contracts?
BI-LATERAL

PROMISE FOR A PROMISE

SELL YOUR HOME----PAY ME COMMISSION
I have a contract that is in writing, all the terms are clear, and there are dates of expiration..

What type of contract do I have?
EXPRESS CONTRACT
Mary brings her Realtor friend to an open house, though they have no agreement in writing, she introduces her friend to the owner as her "agent" why could a contract be assumed in the future?
BECAUSE OF IMPLIED AGENCY OR IMPLIED CONTRACT..

HER ACTIONS LED BOTH PARTIES TO ASSUME AN AGENCY EXISTED.
What are the general rules for a contract to be in writing?
1) Real Estate

2) Contracts over 750.00

3) Contract that will exist for over one year. ( lease, mortgage etc.)
98% of contracts are what type of contract?

Formal or Informal
Informal
My purchase of my home is finished. All funds are transfered, the title is recored. All releases are signed.

1) Can I cancel this contract? Why?
NO

It is an EXECUTED Contract
I am buying a car. I have my offer in but am waiting for my loan approval. At this point my contract is still in what phase_____.
EXECUTORY:
Performance is still necessary.
A VALID CONTRACT is what?
One that possesses the FIVE elements.

It is a enforceable contract.
I have a contract to sell stolen goods.Is this a....

Void
Valid
Voidable
Unforceable
VOID

This act is illegal and thus no contract that can be enforced can exist.
Mrs. Jones has a mental illness and entered into contract from her nephew persuading her to sell. This is a..

Valid
Void
Voidable
Un-Enforceable
VOIDABLE

Two reasons:
Mental Capacity
Duress
I made a valid verbal offer to buy my neighbor's home. I later changed my mind.
I can because the contract is...

Valid
Void
Voidable
Unforceable
UNFORCEABLE

All Real Estate Contracts must be in writing.
What three items must exist in an offer?
1) A SERIOUS offer
2) Definiteness: Terms
3) Communication to seller.
A Realtor gives an offer to another Realtor on a listing. The Listing Agent says " We Accept"
Is this legal? Why?
No.
All offers must be presented to the seller/owner and accepted by the seller/owner.
My doctor says that my broken leg should heal in about 3 months. It has been four months, and still has not healed. Is he in breech of contract? Why?
No
Matters of opinion cannot be held as contract.
I have listed a home for 750K. There are ads, listings in the MLS.
Are my clients obligated to sell at 750K? Why?
NO
An advertisement is not a GUARANTEE to sell. It is an invitation to sell.
Minor Child "A" enters a contract to sell his mini-bike. When the buyer comes, he says "no I don't want to sell"
Is he contracted? Why?
NO
You can't contract with a minor.
If I have written evidence and the other party has verbal evidence. Which takes precedence?

Which Rule Applies
WRITTEN

PAROLE EVIDENCE RULE
Jim made an offer on a home with a 3 day acceptance, Jack, the owner responds with a Counter Offer.

Who is the Offerer Now?
Jack.
He has now produced a new offer/
A Contract that is approved is said to be what?
RATIFIED
An _____________ is an unqualified agreement to the terms in a offer.
ACCEPTANCE
If I am unable to accept an offer I can elect someone to be my _____________ to accept the offer on my behalf.
POWER OF ATTORNEY
ATTORNEY IN FACT
I am the seller and I change my mind. I can _________ the contract before we have an acceptance.
REVOKE
If a party does not want to accpet an offer they can ________ the offer. This is called ____________.
REJECT
REJECTION
Bob gave an offer on a property with a three day acceptance period. On the fifth day, the seller replies with acceptance. Is Bob bound to the offer? Why?
No
Lapse of Time occurred
I mailed an acceptance on June 17th. When is is valid?
The DAY it was mailed, June 17th.
I mailed a revocation of an offer on June 15th. When is it valid?
It is not valid until it is RECEIVED. This is the importance of Certified Mail or Proof of Delivery.
ALL Contracts must have some form of:

Explain:
CONSIDERATION OF LEGAL VALUE

A Detriment to the promisee and a beneficial to the promisor.
In Real Estate, what is something that can be considered an UNILATERAL contract?
OPTION