Chapter 19 Review: Write the Offer and Contracts Flashcards
(25 cards)
An express contract may be written or _____. I order lunch at a diner; there is an express contract that I will pay $6.95 for my meal when I am finished eating
oral
An _____ contract is created through the actions of the parties. I borrowed my neighbor’s lawn mower, a lawn implement that I know my neighbor charges other people on the street to use. When I return his lawn mower, he expects that I will pay him.
implied
If a person dies testate, he had a will; the _______ is responsible for settling the estate
executor
If a person dies intestate, he did not have a will; the court appoints an _________ to settle the estate
administrator
To be _________, a contract must have a legal purpose
enforceable
An offer may be terminated by the following:
Revocation at any time before it is accepted Counteroffer Rejection Time Death of the offeror/offeree Destruction of the property Operation of law Material change of circumstances
An acceptance of an offer means that the offeree accepts _______ _____ __ ___ _____. There is not one thing that the parties do not agree on
every term of the offer
An exchange of promises is the __________ in a contract for real estate
consideration
The Statute of Frauds required that in order to be enforceable in court, real estate contracts must be
written
The essential elements of a real estate sales contract are:
Competent parties Legality of purpose Offer Acceptance Consideration Written contracts Communication
Both parties exchange promises in a ______ contract; a Purchase and Sale Agreement is an example
bilateral
One part makes a promise and the other party forms the contract by completing the action in a _________ contract; offering a reward if someone finds your lost pet is an example. Another example is a listing agreement between a consumer and a real estate brokerage agency
unilateral
An ________ contract is one that has not yet been completed; an example is the Purchase and Sale Agreement between its effective date and the closing
executory
An _________ contract is one for which all parties have performed all duties; a Purchase and Sale Agreement the day after a successful closing is an example
executed
A _____ contract contains all the essential elements and is enforceable in court
valid
A _____ contract lacks one or more of the essential elements; for example, a contract for James to sell cocaine to Duncan is a void contact as it is not for a legal purpose
void
A ________ contract offers one or both of the parties the option to rescind or disaffirm the contract; for example, one of the parties was 16 years old when she made a contract to buy a bicycle. The parties can go through with the sale if they wish. Or either party can disaffirm the sale
voidable
An _______ contract may be brought to court in a lawsuit
enforceable
An __________ contract is one for which neither party can sue to enforce in court. An example is an oral agreement to purchase real estate
unenforceable
Most state laws allow for a licensee to ___________ on a prepared contract form; licensees need to avoid the unauthorized practice of law
fill in blanks
In a real estate contract, liquidated damages are usually limited to the
earnest money deposit
With an ______ contract, the seller agrees to take the property off the market for a period of time
option
A Right of First Refusal is a contract to buy property that is _________________. If the owner ever puts the property on the market, the holder of the right has the first opportunity to buy the property
not currently for sale
Three ways that a sales contract can be discharged by operation of law are:
Forfeiture
Condemnation
Bankruptcy
