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34 Cards in this Set
- Front
- Back
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What is Contract?
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Voluntary agreement or promise between legally competent parties to perform or refrain from performing some legal act, which is supported by legal consideration
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What is Express Contract
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Created by words (written or oral)
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What is Implied Contract
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Created by actions or conduct (rather than words)
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Whait is a Bilateral Contract?
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(means 2) Two promises being obligated "I do this AND you do that. "Okay"
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What are some Bilateral Contracts?
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Agreement in Sale, Lease, Property management contract
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What is a Unilateral Contract?
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1 party is obligated to perform - typically includes the word "if" "I will do this IF you will do that."
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What are some Unilateral Contracts?
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Option contract, Pure listing agreement, Cooperating brokerage agreement
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What is an Executed Contract?
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All parties have completely fulfilled their obligations
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What is an Executory Contract?
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Oneo r both parties still have an act to perform. ie An agreement of sales - from the time it is signed until closing.
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What does Valid mean?
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It meets all the essential requirements of a contract that make it legally sifficient to be enforceable.
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What does void mean?
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When it has no legal force because it lacks some or all essential requirements to be recognized as a contract
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What does voidable mean:
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Appears on the surface to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle.
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Who can cancel the voidable contract with a minor?
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Only the minor
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What does unenforceable mean?
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On surface valid however neither party can sue the other to force performance
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What is Statue of Frauds
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Requires contracts of real estate and lease of MORE than 3 yrs to be in writing to be forceable
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What is the name of the person who accepts the offer?
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Offeree
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What are the 5 essentials of a contract?
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1. Offer & Acceptance
2. Consideration 3. Competent parties 4. Reality of consent 5. Legal purpose |
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What does offer and acceptance mean?
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(Offeror and offeree) - must exist otherwise contract is void 1 - offer, 2 - acceptance, 3 - notification
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Whatis proposing any deviation from the terms of an offer?
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It constitutes a rejection of the original offer and becomes a new offer called COUNTEROFFER
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What is Consideration
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It must exist otherwise void. It must be "good or valuable" between the parties.
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What does competent parties mean?
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Legal age (determined by state law) and sound mind.
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What is legalit of Object?
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Must be for a legal purpose
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What is reality of consent?
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Must be entered in as free & voluntary act of each party.
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What 5 concepts deprive a person from free & voluntary act?
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1. Misrepresentation
2. Mistake 3. Fraud 4. Undue influence 5. Duress |
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What does the parol evidence rule state?
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That a written contract takes precedence over oral agreements or promises.
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What does a discharged contract mean
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The agreement is terminated.
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What does Assignment mean?
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A transfer of rights and/or duties under a contract.
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What is Novation?
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Substitution of a new contract in place of the original one.
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Breach (or default) of contract mean?
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Violation of any terms or conditions without legal excuse.
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What is Suit for Specific performance
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where buyer asks the court to force the seller to go through with the sale and convey the property as previously agreed.
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What is liquidated damages?
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Clause that permits the seller to keep the eanest money deposit & any other payments received from the buyer as the seller's sole remedy.
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What are the 6 types of contracts used in Real Estate transactions?
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1. Listing Agreements
2. Buyer Agency Agreement 3. Sales Agreement (21 pgs) 4. Options 5. Land contracts or contracts for deed 6. Leases |
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What is the statute of Limitations?
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Is four yrs from the date of contract is breached.
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What are the 5 essentials of a valid contract:
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1. Offer & Acceptance
2. Consideration 3. Legally competent parties 4. Legality of object 5. Reality of consent |
