Chapter 25: Contracts Flashcards
(28 cards)
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What is a contract?
A legally binding agreement between two or more parties.
What are the four essential elements of a valid contract?
Legal purpose, offer and acceptance, competent parties, consideration.
What is consideration?
Something of value exchanged between parties (money, services, promises).
What is the statute of frauds?
Requires certain contracts, including real estate, to be in writing to be enforceable.
What is the statute of limitations for written contracts in Florida?
5 years.
What is the statute of limitations for oral contracts in Florida?
4 years.
What is an express contract?
A contract in which terms are stated either orally or in writing.
What is an implied contract?
A contract formed by actions or conduct, not stated in words.
What is a bilateral contract?
A contract where both parties promise to perform.
What is a unilateral contract?
A contract where only one party makes a promise.
What is an executory contract?
A contract not yet fully performed.
What is an executed contract?
A contract that has been fully performed by all parties.
What makes a contract void?
Lacks one or more essential elements.
What makes a contract voidable?
One party may cancel due to legal cause, such as misrepresentation.
What is an unenforceable contract?
Valid in fact, but cannot be enforced in court (e.g., not in writing).
What are common ways to terminate a contract?
Performance, mutual rescission, impossibility, breach, lapse of time.
What is specific performance?
A legal remedy requiring the breaching party to perform as agreed.
What is liquidated damages?
An amount agreed to in advance if a party breaches the contract.
What is rescission?
Cancellation of the contract with return of all parties to original positions.
What is a listing agreement?
A broker’s contract with a seller to market a property.
What is a buyer brokerage agreement?
A broker’s contract with a buyer to represent them in a transaction.
What is a sales contract?
Agreement between buyer and seller to transfer real property.
What is an option contract?
A unilateral contract giving one party the right to buy for a set time and price.
