Chapter 11

Question 0

An offer and acceptance, meetings of minds, or a mutual understanding is an?

Answer 0

Agreement

Question 1

Oral contracts is also known as?

Answer 1

Parol contracts

Question 2

All terms and conditions are specified and agreed to by the parties

Answer 2

Express contract

Question 3

All terms can be assumed by the nature of the agreement or the words and actions of the parties

Answer 3

Implied contract

Question 4

Both parties to the contract mutually agree to be bound to performance. Promise for a promise

Answer 4

Bilateral contract

Question 5

Only one party expressly agrees to perform an act. A promise for an act

Answer 5

Unilateral contract

Question 6

A contract is considered to be executory if any term or condition remain to be performed.

Answer 6

Executory contract

Question 7

When all parties have fully performed

Answer 7

Executed contract

Question 8

Termination of offers

Answer 8

Acceptance, withdrawal, rejection, lapse of time, death or insanity destruction of the property. (Wild card)

Question 9

Termination of contracts

Answer 9

Breach- if party fails to meet obligation
Revocation- party can revoke contract
Renunciation- both parties terminate
Lapse of time- no performance during the time
Abandonment- if a party walks away from the contract
Performance- if both parties perform to terminate the contract

Question 10

Legal remedies for breach contract?

Answer 10

Suit for cancellation- injured party suits to cancel the contract

Suit for specific performance- injured party suits to make the party perform as agreed in the contract

Suit for damages- injured party suits for damages

Question 11

Liquidated damages

Answer 11

When the party agreed upon and specified in the contract. The penalty to be impose in the event of a breach by either party

Question 12

Unliquidated damages

Answer 12

Are those not specified in the contract, but are determined by a court for damages.

Question 13

Statue of limitations

Answer 13

Provides time limits within parties which are allowed to bring legal action to enforce their rights under a contract.

Question 14

Open listing

Answer 14

Is unilateral contract. Owner can give an open listing to any number of brokers for the sale of the property as a competition.

Question 15

Is unilateral contract. The owner promises to list the property with only one broker

Answer 15

Exclusive listing

Question 16

Is bilateral contract. Owner promises to pay a commission regardless who sells the house. Must be in writing.

Answer 16

Exclusive right of sale

Question 17

Option contract

Answer 17

Is a right to buy a property during a specific time , at a specific period. Unilateral contract. To acquire this right, party must pay a definite valuable consideration. Is not obligated to buy the house