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101 Cards in this Set
- Front
- Back
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True or False: An offeror may rescind the offer at any time verbally until the age has notified him of acceptance. If a broker is an agent of the buyer, notice to the agent is deemed to be notice to the buyer. |
TRUE |
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Time is of the essence refers to : |
A contract must be acted upon either within the time stated on the contract or within a reasonable time period.
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The legal age to be considered an adult in Arizona is? |
18 unless they are emancipated (such as being married under the age of 18)
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Acceptance of an offer to purchase creates a contract and this is referred to as a |
Meeting of the minds |
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Anything of value given by parties to a contract is: |
Consideration (good or valuable)
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If an individual is under the age of 18 but is married, they are considered: |
Emancipated (legally competent)
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A deviation from the terms of the original offer creates a : |
Counter offer
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The fact that a document must stand on its written word and cannot be supported by oral testimony refers to: |
Parol Evidence Rule
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The responsibility of notifying the offeror of acceptance belongs to: |
Agent/broker
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What is the typical consideration when property is transferred as a gift? |
Love and affection (good consideration) |
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If the offeror dies prior to the offer being accepted, what is the status of the offer? |
Terminated
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Most real estate contracts must be in writing because of: |
Statute of Frauds
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A contract that depends on the actions of the parties as evidence of a contract is referred to as? |
Implied Contract
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A legally enforceable agreement under which tow parties promise to do something for each other is known as? |
Bilateral Contract
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A contract created by the words of the parties is? |
Expressed (written or oral)
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A contract in which the parties have performed all of the provisions is? |
Executed (complete)
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A contract which is currently in escrow is considered? |
Executory (not yet complete)
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An option is an example of a contract that is? |
an Unilateral contract
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Most real estate contracts are? |
Bi-lateral contracts
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A contract to do something illegal is? |
Void
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A contract that is missing one of the essential elements is? |
Void |
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A contract entered into with a 17 year old is? |
Voidable by the 17 year old only.
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A verbal agreement to purchase a house is? |
Unenforceable
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A delay in asserting one's legal rights is called? |
Laches
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A contract containing all required essential elements is? |
Valid
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A valid contract is considered: |
Enforceable
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A contract must stand on the written word without introducing oral testimony because of the |
Parol evidence Rule
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the time in which parties to the contract may bring legal suit to enforce their rights is the? |
statute of limitations
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When either party defaults on a contract it is considered a: |
Breach
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The most common discharge of a contract is through? |
Performance / Discharge
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When the buyer has breached the contract, the seller can keep the earnest deposit. This is referred to as? |
Liquidated Damages
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When a lawsuit is initiated to recover the losses of one party, this referred to as? |
Actual Damages
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When there is an attempt to recover more than the actual images, this is referred to as? |
Punitive Damages
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The act of cancelling the contract and returning the parties to their original positions is? |
Rescission |
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Substituting a new contract for an existing contract is? |
Novation
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Real estate agents can write contracts relating to real estate because of? |
Article XXVI of the Arizona Constitution
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When writing contracts, agents cannot? |
Charge a fee.
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The words on the preprinted for are called? |
Boilerplate
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Laws prohibiting certain contracts to be written on Sundays are? |
Blue Laws
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The document which is essentially an employment contract is the? |
Listing agreement
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How is the amount of the earnest deposit arrived at? |
Agreement between the buyer and seller. |
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If a broker deposits the earnest deposit into his personal account for safekeeping, this is considered? |
Commingling / Illegal
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If a broker spends the earnest deposit on person items, this considered? |
Conversion / Conversion
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Any conditions that must be satisfied before the contract is fully enforceable is a ? |
Contingency
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A change or modification to an existing contract is? |
Amendment
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A provision added without altering the terms of the original contract is? |
Addendum
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If an individual has legal title, they have what? |
The Deed. |
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If an individual has money invested and possession of a property, they have? |
Equitable Title
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In a land contract the seller is acting as the: |
Vendor / Lender
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A landlord must allow a tenant with disability to do what? |
Make reasonable accommodations at their own expense, but may have to restore it to the original condition upon vacancy.
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Brokers are required to review and initial all contracts within? |
10 business days
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Brokers are required to keep copies of all completed contracts for how long? |
5 years
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Rejected offers must be kept for how long? |
1 year
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What is received by the seller in exchange for the deed? |
consideration |
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Who is the person that makes an offer? |
Offeror
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If you refrain from performing some act it is considered? |
Forbearance
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A legally enforceable agreement between parties is called a? |
Contract
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A action whereby a person is forced to act against his/her will is call: |
Duress
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A change to the existing content of a contract is called: |
amendment
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A delay in asserting one's rights is called: |
Laches
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The total substitution of parties or contracts is called: |
Novation
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A provision to an existing contract without altering the content is called: |
Addendum
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Cancelling a contract and returning parties to their original positions is considered: |
Rescission
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Good faith money is also called: |
Earnest Deposit / Earnest Money
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Conditions that must be satisfied before a contract becomes fully enforceable are: |
Contingencies
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The individual giving an option: |
Optionor
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the person to whom the offer is made: |
Offeree
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The individual deciding whether to go ahead with an option: |
Optionee
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The individual acting as the lender in a land Contract: |
Seller / Vender
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The individual holding equitable title in a land contract: |
Buyer / Vendee |
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A party defaults: |
Breach
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Competent parties who are of legal age: |
Capacity
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A meeting of the mind is also called: |
Offer and acceptance
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Communicating acceptance is called: |
Notification
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Something of value given in exchange for a promise: |
Consideration
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Consideration given when property is a gift |
Love and affection
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Purpose that isn't illegal |
Lawful purpose
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street address isn't sufficient you need: |
you need a legal description.
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Because of the statue of frauds |
Contracts must be in writing
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What is necessary to signify agreement by all parties? |
Signatures
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Types of contracts: A promise to act contract: |
Unilateral Contract
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Types of contracts: promise for a promise contract: |
Bi-lateral contract
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Types of contracts: or written ageement contract: |
Expressed
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Types of contracts: Created by the actions of the parties contract: |
Implied
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Types of contracts: Some action still needs to be completed contract? |
Executory
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Types of contracts: Completed contract: |
Executed
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On the day of closing, when the deed is delivered to the buyer and the buyer delivers payment to the seller, the purchase contract is now what? |
An executed contract. |
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Execute= Exetutory= Executed= |
- to sign - not yet signed - completed |
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Contract is a: |
legally enforceable agreement between competent parties who are to do or not do something. |
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Offer, acceptance and notification is referred to as: |
Meeting of the minds. |
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In the law of contracts, an unequivocal and absolute acceptance requirement, states that an offer must be accepted exactly with no modifications. This is called? |
Mirror Image Rule |
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A verbal agreement is legal but is considered not-: |
Enforceable |
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Parol evidence rule states: |
There can be no additional oral testimony. Oral testimony does not override the written word. a Document must stand on the written word. |
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Unilateral Contract: |
One park makes a promise, second party is not obligated to act. |
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An option is an example of a: |
Unilateral Contract |
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Bilateral Contract: |
Both parties promise to do something. |
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A purchase agreement has been accepted and is in escrow. It is considered what kind of contract: |
Executory Contract |
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On the day o closing, when the deed is delivered to the buyer and the buyer delivers payment tot eh seller, the purchase agreement is no considered what kind of contract: |
Executed. |
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What are the 3 essential elements required of a Valid contract? |
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If a contract is missing one or more of the essential elements, it is what kind of contract? |
a VOID contract |
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What affect do contingencies create on a contract? |
Contingencies make a contract "voidable" |
