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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