Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
34 Cards in this Set
- Front
- Back
|
Contract |
Voluntary agreement/promise btwn competent parties |
|
|
Express Contract |
Parties state the terms and show their intention in words |
|
|
Implied Contract |
Agreement demonstrated by their acts and conduct |
|
|
Can an inured party enforce the contract in court if the agreement was an oral contract? |
No they cannot |
|
|
Illinois Statute of Frauds |
Requires that any contracts for the sale of land or for leases that for more than one year from the date they are entered into must be in writing to be enforceable in court |
|
|
IL Real Estate License Act of 2000 |
Other contracts must be in writing, such as employment agreements btwn sponsoring brokers and their sponsored licensees |
|
|
Bilateral Contract |
Both parties promise to do something (purchasing agreement) |
|
|
Unilateral Contract |
One sided agreement, like a listing contract |
|
|
Executed contract |
Fulfilled their promises |
|
|
Executory Contract |
One or both parties still have an act to perfom |
|
|
What is the name of the person who makes the offer and he who accepts it? |
Offeror & offeree |
|
|
Offer |
A promise made by one party requesting something in exchange for that promise |
|
|
An offer or counter offer may be withdrawn by when? |
Any time before it has been accepted |
|
|
Consideration |
Contract must be based on consideration, that is something of legal value offered by 1 party and accepted by another. |
|
|
Good consideration |
Love and affection |
|
|
Valuable consideration |
Money, things of value. |
|
|
Reality of Consent |
free and voluntary act of each party. If not, the contract is void |
|
|
Legal Purpose |
Consent, competent parties, consideration, offer & acceptance |
|
|
Validity of Contract |
Meets all essential elements, void if it has no legal force/effect. |
|
|
When are contracts voidable by defrauded parties including those by minors? |
Always |
|
|
Assignment |
Transfer of rights or duties under a contract of parties |
|
|
Novation |
Substitution of a new contract for an existing contract |
|
|
How long is the statue of limitations for oral contracts? & written contracts? |
Oral: 5, Written: 10 |
|
|
What are reasons for termination of a contract? |
Partial performance, substantial performance, impossibility of performance, mutual agreement, operation of law, rescission |
|
|
Can a Licensee leave a blank space in a signed contract? |
No, at worst, write NA |
|
|
All insertions and deletions must be at the direction of who? |
Principals |
|
|
Listing and buyer agency agreements are employment contracts and must be recorded how? |
In writing |
|
|
Escrow account must be held where? |
In a separate account |
|
|
Equitable Title |
Both buyer and seller have executed a sales contract, the buyer acquires an interest in the land. |
|
|
Who bears any loss that occurs before the title passes to the buyer in route to a sale? |
Seller |
|
|
Contingencies |
Additional conditions that must be satisfied before a sales contract is fully enforceable |
|
|
Mortgage contingency |
Buyers earnest money is protected until a lender commits the mortgage loan funds |
|
|
Inspection contingency |
Contingent on the buyer obtaining certain inspections of the property w/in a set time frame |
|
|
Property sale contingency |
Buyer may make the sales contract contingent on the sale of their current home by a certain date. |
