Chapter 11: Real Estate Contracts. Key Terms Part 2 Flashcards Preview

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Flashcards in Chapter 11: Real Estate Contracts. Key Terms Part 2 Deck (15)
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1
Q

Liquidated damages

A

The sum agreed on to serve as damages in case of future default.

2
Q

Novation

A

Substitution of a new contract for an existing one.

3
Q

Offer and acceptance

A

Considered a “meeting of the minds”

4
Q

Option

A

A contract binding one party, other party is for you to act up on this offer or not. Example: lease with the option to buy.

5
Q

Parole evidence rule

A

The convention that a written contract overrides spoken promises.

6
Q

Recission

A

A return to the status quo. In contract law, rescission has been defined as the unmaking of a contract between parties. Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract (the status quo ante).

7
Q

Specific performance

A

A court action usually asking that the seller forced to sell as agreed.

8
Q

Statute of frauds

A

A law requiring certain contracts to be in writing.

9
Q

Statute of limitations

A

A law on time limit after which one cannot assert a legal right. A woman of time in which one can sue.

10
Q

Time is of the essence

A

A contract clause requiring punctional performance.

11
Q

Unenforceable contract

A

A seemingly valid contract but neither party can sue to force the performance.

12
Q

Unilateral contract

A

A one sided promise, valid only if the other party acts. I will do this if you do that. For example the police offer a reward for information that leads to the capture of a suspect.

13
Q

Valid contract

A

A contract that meets all legal requirements.

14
Q

Void contract

A

A contract that does not meet all legal requirements.

15
Q

Voidable contract

A

A contract that is binding, but one party may disaffirm it. A minor enters into a contract. However if this minor is married then the contract is not a “voidable contract” and will be treated under normal contract.

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