Term
| Elements of a Valid Contract (5) |
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Definition
CLAIM:
Consideration
Legal Capacity
A lawful Objective
In Writing
Mutual Consent
(In Writing is Statute of Frauds, necessary for real estate contract to be enforced) |
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Term
Termination of Offer (5)
(no mutual consent) |
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Definition
- Revocation
- Lapse of time
- Death or incompetency of offerer
- Rejection of offer
- Counteroffer |
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Term
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Definition
Assigning a contract transfers rights and obliations under a contract to another person but original assignor has CONTINUED LIABILITY.
A novation completely replaces another person with rights and obligations and original party is RELIEVED of ALL LIABILITY.
A novation always requires the other party's consent. |
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Term
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Definition
| The amount of money both parties of a contract agree to in advance that will serve as full compensation in the event that one party breaches a contract. (Ex: Earnest Money) |
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Term
| Tender vs. Anticipatory repudiation |
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Definition
Tender is an unconditional offer by one of the contract parties to perfor his or her part of the agreeent. "An offer to make an offer good."
Anticipatory Repudiation is a positive statement by the defaulting party of a contract indicating that they will not or cannot fulfill the terms of the agreement. |
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Term
| Land Contracts are also known as (4): |
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Definition
- Contract for deed
- Installment sales contract
- Real estate contract
- Contract for sale |
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Term
| Parties to a Land Contract are: |
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Definition
- Vendor (the seller)
- Vendee (the buyer) |
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Term
| Parties to an option are: |
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Definition
- Optionor (the property owner who grants the option)
- Optionee (the one who has the option right)
Unilateral contract because optionee is not obligated to excercies option -- although will lose consideration |
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Term
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Definition
| A person must have legal capacity to enter into a contract: mentally competent and 18+ years old. |
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Term
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Definition
| Something of value exchanged by parties to a contract; either a benefit to the party receiving or a detriment to the party offering it |
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Term
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Definition
| An agreement between 2 or more competent persons to do or not do certain things for consideration |
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Term
Fraud
(also name 2 types of fraud) |
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Definition
Misrepresentation of material fact to another person who relies on that misrepresentation as the truth in deciding to enter into a transaction.
Actual Fraud: Intent to decieve or doesn't know if statement is true but says it anyway
Constructive Fraud: False statement with no intent to decieve |
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