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59 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
express contract

two parties declare their intentions either orally or in writing

how a contract is created
implied contract
two parties actions indicate that they intend to create a contract.
how a contract is created
bilateral contract

results when a promise is exchanged for a promise.
how a contract is created
what wording is used in a bilateral contract
I will do this and you will do that.
how a contract is created
unilateral contract

results when a promise is exchanged for a performance
how a contract is created
Is an option to purchase a unilateral contract or bilateral contract?
unilateral contract
how a contract is created
what is an open to purchase a unilateral contract?

it is an offer by the optionor to sell his property in the future in return for an option fee.
how a contract is created
at the time the option is exercised( and the optionee has the obligation to close) it becomes what kind of contract?
a bilateral contract for sale
how a contract is created
what will the wording say in a unilateral contract
I will do this if you will do that
how a contract is created
forbearance/ forbear
not to act
how a contract is created
what is an example of a forbear?

a lender may agree not to foreclosure on a delinquent mortgage loan if the borrower agrees to a new payment schedule.
how a contract is created
valid contract
is one that meets all requirements by law; an enforceable contract.
how a contract is created
void contract

has no legal effects and in fact is not a contract at all. Example if the contract was not signed by the correct person.
how a contract is created
unenforceable contract
one neither party can sue the other to force performance.
how a contract is created
the enforcement is now barred by what?
statute of limitations or the doctrine of laches (unreasonable delay)
how a contract is created
the 5 essentials of a valid contract requirements must be met
legally competent parties; Mutual agreement; lawful objective; consideration; contract in writing when required by law
essentials of a valid contract
legally competent parties
they must legal competent; the most objective standard is age
essentials of a valid contract
Mutual agreement
there must be a mutual willingness to enter into a contract.
essentials of a valid contract
lawful objective
contracts can not call for breaking of the law
essentials of a valid contract
consideration
is usually something of value, such as a promise to do something, money, property, or personal service.
essentials of a valid contract
contract in writing when required by law
statute of frauds
essentials of a valid contract
contract with a minor is?
void
essentials of a valid contract
mutual agreement is also called

mutual consent, mutual assent meeting of the minds
essentials of a valid contract
the purpose of requiring consideration is to

demonstrate that a bargain has been struck between the parties on the contract
essentials of a valid contract
mortgages and trust deed are enforced by

bonds and notes
essentials of a valid contract
a individual can give another person the power to act on their behalf. the person holding the power of attorney is call the attorney in fact
power of attorney
essentials of a valid contract
what is done with the power of attorney for it to be valid?
it must be acknowledged by the principal and recorded.
essentials of a valid contract
offeror
making the offer(giving an offer) ; the rolls are reversed with a counteroffer
essentials of a valid contract
offeree
the one receiving the offer; the rolls are reversed with a counteroffer
essentials of a valid contract
the means of communication in a offer and acceptance can be how?

spoken, written, an action the implies acceptance
essentials of a valid contract
there are three options to a counteroffer
reject it, agree to it, or make a counteroffer
essentials of a valid contract
it is considered reject not only by saying you reject it but by what?
if any changes are made in the terms; this is now considered a counteroffer
essentials of a valid contract
when can you reject your first offer
any time before acceptance; this is strongly advices against
essentials of a valid contract
if you do not have a mutual agreement in writing the tenant can
rescind (cancel) and get the rent money back
essentials of a valid contract
this is used in contract law and arises from ambiguity in negotiation and mistake of material facets
mistake
essentials of a valid contract
mistake does not include

innocent misrepresentation, ignorance, inability, or poor judgment
essentials of a valid contract
what three things cannot be used to obtain a contract?

duress menace (use of force) (threat of valance)
undue influence (unfair advantage)
essentials of a valid contract
what are the 3 meaning of consideration?
valid contract, money, acknowledgment
essentials of a valid contract
parol evidence rule (can be used in certain circumstances)
permit oral evidence to complete an otherwise incomplete or ambiguous (open to more than one interpretation) written contract
essentials of a valid contract
executor

in the process of being performed
essentials of a valid contract
executed
already performed or performance has taken place
essentials of a valid contract
execute
the process of completing, performing, or carrying out something.
essentials of a valid contract
novation
is the substitution of a new contract between the same or new parties
performance and discharge of contract
uniform vendor and purchase risk act
neither possession nor title has passed and there is material destruction to the property.
performance and discharge of contract
in a breach of contract the wronged or innocent party has six alternatives.
1. accept partial performances, 2. rescind the contact unilaterally 3. sue for money 4. sue for specific performance 5. accept liquidated damages 6. mutually rescind the contract.

1. accept partial performances
when there is not a great deal at stake (they feel the time it will take to sue is not worth the money they will get.)

2. rescind the contact unilaterally
the position that if the other person is not going to perform then the innocent party will not either.

3. sue for money
getting money for damages; they can also recover interest from the day of the lose to the day of reimbursement

4. sue for specific performance
the breaching party must carry out the remainder of the contract according to all its terms, price, condition agreed upon

5. accept liquidated damages(earnest money)
amount of money specified in a contract as compensation to be paid if the contract is not satisfactorily completed.

6. mutually rescind the contract.
relive both parties of the contract

caveat emptor
let the buyer beware before buying

a contract binding on one party but not the other is

voidable contract

when an offer makes a valid offer and communicates it to the offeree
the offeree, may reject the offer, accept the offer, make a counteroffer

a offer nay be terminated by

withdrawal of the offer, refusal of the offer, lapse of time

if a contract is a joke; it is not valid why
it lacks contractual intent, mutual agreement

legal action to force the breaching party to carry out the remainder of a contract is called a suit for
specific performance

voidable

it maybe rescinded by one or both parties.

In an option contract, who is bound to the option.

the seller is bound, That is, the optionee doesn’t have to exercise the option and doesn’t have to buy, but the seller must keep the offer open.