Real Estate Fundamentals Chapter 11

Front 1

acceptance

Back 1

a promise by the offeree to be bound by the exact terms proposed by the offeror.

Front 2

assignment

Back 2

the transfer in writing of interest in a bond, mortgage, lease, or other instrument.

Front 3

bilateral contract

Back 3

all parties to the instrument are legally bound to act as prescribed.

Front 4

breach of contract

Back 4

violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.

Front 5

consideration

Back 5

[1] that received by grantors in exchange for their deed.

[2] something of value that induces a person to enter into a contract.

Front 6

contract

Back 6

a legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs , the law provides a remedy.

Front 7

counteroffer

Back 7

a new offer made as a reply to an offer received. it has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror.

Front 8

electronic contracting

Back 8

a process of integrating information electronically in a real estate transaction between clients, lender, and title and closing agents.

Front 9

executed contract

Back 9

a contract in which all parties have fulfilled their promises and thus performed the contract.

Front 10

executory contract

Back 10

a contract under which something remains to be done by one or more of the parties.

Front 11

express contract

Back 11

an oral or written contract in which the parties state the contract's terms and express their intentions in words.

Front 12

implied contract

Back 12

a contract under which the agreement of the parties is demonstrated by their acts and conduct.

Front 13

liquidated damages

Back 13

an amount predetermined by the parties to a contract as the total compensation to an injured party should the other party breach the contract.

Front 14

novation

Back 14

substituting a new obligation for an old one or substituting new parties to an existing obligation.

Front 15

offer

Back 15

a promise made by one party requesting something in exchange for that promise with the intention that the offeror will be bound to the terms if the offer is accepted.

Front 16

rescission

Back 16

the practice of one party canceling or terminating a contract, which has the effect of returning the parties to their original positions before the contract was made.

Front 17

statute of frauds

Back 17

that part of a state law that requires certain instruments, such as deeds, real estate sales contracts, and certain leases to be in writing to be legally enforceable.

Front 18

suit for specific performance

Back 18

a court suit initiated by a buyer when the seller breaches a real estate sales contract, asking the court to force the seller to go through with the sale and convey the property as previously agreed.

Front 19

time is of the essence

Back 19

a phrase in a contract that requires the performance of a certain act within a stated period.

Front 20

unenforceable contract

Back 20

a contract that has all the elements of a valid contract, yet neither party can sue the other to force performance of it.

Front 21

unilateral contract

Back 21

only one party is bound to act.

Front 22

valid contract

Back 22

a contract that complies with all the essentials of a contract and is binding an enforceable on all parties to it.

Front 23

void contract

Back 23

a contract that has no legal force or effect because it does not meet the essential elements of a contract.

Front 24

voidable contract

Back 24

a contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties.