05 Flashcards
(25 cards)
a legally enforceable and binding agreement between parties wherein a promise to do or not do something is given in exchange for valuable consideration.
contract
part of a contract that requires one or more of the contracting parties to refrain from actions they are otherwise legally entitled to perform.
forbearance agreement
part of a contract that requires parties either to perform certain actions or to uphold certain contractual promises.
performance agreement
additions to a completed contract that specify supplementary information to the contract.
addenda
change or modification to an already agreed-upon contract.
amendment
a contract wherein both parties are obligated to perform in an exchange of promises.
bilateral contract
a contract in which all terms have been fulfilled by all parties.
executed contract
a legal concept stating that the court can only consider information that appears within the four corners of the documents.
four corners doctrine
a contract wherein one party makes a promise and is obligated to perform if a second party chooses to accept the offer and perform in exchange for that which was promised.
unilateral contract
a legal term that states that if the important details of an agreement were discussed but fail to make it into the written contract, the written and signed contract is given authority over any word of mouth.
parol evidence rule
a law that requires certain types of contracts, including those conveying interest in real property, to be in writing to be enforceable.
statute of frauds
the transference of rights and obligations in a contract form from one party to another.
assignment
a provision within a contract that makes performance conditional upon the occurrence of a stated event.
contingency
the act of replacing an existing contract with a new one.
novation
when one or more of the contracting parties perform only a portion of the agreed-upon contractual duties.
partial performance
when a party performs the majority of the contract’s requirements but does not perform according to the contracts stipulations.
substantial performance
the official opinion of an attorney regarding the condition of a property’s title.
opinion of title
the act of documenting any transfer or claim of interest in the title to real property in public records per state law.
recording
a policy that protects homeowners (and likewise, lenders) from certain financial losses due to title issues, such as defects, encumbrances, and liens.
title insurance
a life estate in which the measuring life is that of the life tenant; it is an estate created by a deed that lasts for the duration of the tenant’s life.
conventional life estate
a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions; ownership reverts back to the original owner if these stipulations are violated.
defeasible fee estate
the degree, quantity, and extent of interest one owns in property.
estate
a lease with a specific starting and ending date; aka tenancy for years.
estate for years
a type of defeasible fee estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated.
fee simple determinable estate
