Chapter 12 - Contract Law Flashcards
Express contract
Stated terms and intentions; may be oral or written.
Implied contact
Demonstrated by acts and conduct; eg. can’t drive away without paying for gas
Bilateral contact
Both parties agree to do something, one promise in exchange for another.
Unilateral contract
One sided agreement, second party not required to act, but first party is obligated to keep promise if second party complies (eg. anyone wanna paint my room?)
What’s the difference between executed and executory contracts?
Timing. Executed means all parties have fulfilled their promises; Executory means one or both parties still have acts to perform.
Mutual assent (contact law)
Offer and acceptance
Until when can an offeror revoke the offer?
Until they’ve been notified of the other party’s acceptance.
Consideration
Something of legal value offered by one party and accepted by another.
An example of Good Consideration is…
love and affection
An example of Valuable Consideration is…
Money and things of tangible value
Assignment (contracts)
Substitution of parties. Transfer of rights or duties under a contract to another person.
Novation (contracts)
Substitution of contracts. A new contract in place of an old contract.
If a seller declares a contract forfeited, what happens with the buyers earnest money?
It’s retained by the seller as “liquidated damages”.
Quinlan & Tyson Decision was significant because…
It placed limitations on real estate licensees in drafting contracts.
What is it required to say at the top of a real estate sales contract?
“Real Estate Sales Contact”
