Chapter 4: The Basics of Contracts

Question 1

Abrogation

Question 2

assignee

Answer 2

Party to whom a lease is assigned or transferred.

Question 3

assignor

Answer 3

The person transferring a claim, benefit, or right in property to another.

Question 4

consideration

Answer 4

Something of value—such as money, a promise, property, or personal

services.

Question 5

forbearance

Answer 5

To forgive a debt

Question 6

novation

Answer 6

Replacing the old agreement with a new one. (or party)

Question 7

offer

Answer 7

A presentation or proposal for acceptance to form a contract.

Question 8

offeror

Answer 8

The party making an offer.

Question 9

rescission

Answer 9

Legal action taken to repeal a contract either by mutual consent of the
parties or by one party when the other party has breached a contract.

Question 10

revocation

Answer 10

The canceling of an offer to contract by the person making the original

offer.

Question 11

specific performance

Answer 11

A court action brought to compel a party to carry out the terms of a

contract. (BROKERS DO NOT SUE FOR SPECIFIC PERFORMANCE, YOU DONT GET MONEY for damages, THIS IS AN ACTUAL PERFORMANCE)

Question 12

statue of frauds

Answer 12

The law that requires contracts to be in writing.

Question 13

statue of limitations

Answer 13

You only have a certain amount of time to claim damages after contract is breached

Question 14

tender

Answer 14

An offer by one of the parties to carry out his or her part of the contract.

Question 15

waiver

Answer 15

The relinquishment or refusal to accept a right.

Question 16

Express contract or?

Answer 16

Implied contract

Question 17

Bilateral contract or?

Answer 17

Unilateral contract

Question 18

Executory contract or?

Answer 18

Executed contract

Question 19

Express contract

Answer 19

Declare terms and put intentions into words or verbally (ex: lease or rental agreement)

Question 20

Implied contract

Answer 20

Agreement is shown by act rather than words (ex: you made an agreement when u went to the restaurant that you will pay money in exchange for food

Question 21

Bilateral Contract

Answer 21

Promise tor perform an act in exchange for another persons promise to perform (buyer/seller of a house, RE transaction)

Question 22

Unilateral Contract

Answer 22

One party performs an act without the expectation of performance from the other party (radio station giving away money to 100th caller)

Question 23

Executory Contract

Answer 23

A contract in which obligation to perform exists on one or both sides.

Question 24

Fraud

Answer 24

Deceive in order to get someone to part w something of value (bait & switch)

Question 25

Duress/menace

Answer 25

Use of force or violence. Duress puts the knife to the throat, menace cuts the throat lol

Question 26

Undue influence

Answer 26

unfair?

Question 27

Innocent misrepresentation

Answer 27

can still have a rovked contract

Question 28

Valid Contract Checklist

Answer 28

​Mutual consent/lawful object/consideration/capable parties

Question 29

Voidable contract

Answer 29

Valid on its face but can be rejected by either of the parties

Question 30

unenforceable contract

Answer 30

valid, but for some reason cant be proved by either or one of the parties (oral long term lease)

Question 31

Void contract

Answer 31

no contract at all or has no legal effect

Question 32

Ways to discharge a contract

Answer 32

Full performance, release by one/all parties, Assignment, Novation, Breach of Contract, Lawsuit for special performance

Question 33

Assignment

Answer 33

Transfers all interest in the contract from assignor (principal) to assignee

Question 34

Novation

Answer 34

Substitution, when existing contract or legal obligation is replaced w a new one

Question 35

Types of breach of contracts

Answer 35

``` Unilateral recission (one party didnt perform) Lawsuit for damages (liquidated or compensatory)* compensatory is determined by court* ```

Question 36

Punitive damages

Answer 36

Used for punishing, it is for emotional damages, excessive, by court

Question 37

Exemplary Damages

Answer 37

Physical damages, used for restoring things back to the way they were before the contract breach, by court

Question 38

Recession and Restitution

Answer 38

Rescind back and restore to before the contract

Question 39

Breach

Answer 39

Failure to perform on part or all of the terms and conditions of a contract

Question 40

Prima Facie

Answer 40

Primary Evidence

Question 41

Verbal contract is also called a what??

Answer 41

A parol contract

Question 42

Whats the max lease on agriculture prop? What about non agriculture prop?

Answer 42

Agriculture prop - 51 Years | City and non agriculture prop - 99 Years

Question 43

Executory contract is:

Answer 43

A contract where something remains to be done by one or both parties

Question 44

An option is a contact to..

Answer 44

Offer to sell

Question 45

Open listing, mortgage, and escrow instructions are all

Answer 45

Contracts.

Question 46

if a contract has a handwritten section and a typed section, which one takes precedence?

Answer 46

The handwrittin portion is first and then the typed

Question 47

Non Illusory intrustrument is a

Answer 47

definitive instrument wihch becomes a binding contract when executed

Question 48

Offer, option, and rejection are all terms regarding

Answer 48

Contracts

Question 49

Void contract is

Answer 49

Not enforceable by law

Question 50

Voidable contract

Answer 50

you buy a house thinking its red, but then you see the house and its blue. maybe u think the blue is okay so you continue with the purchase. (you still have the option to continue or not) (any threat is voidable)

Question 51

In what document is a safety clause found?

Answer 51

Listing

Question 52

The two types of listings are?

Answer 52

Open (multiple brokers, whoever brings the buyer gets paid) and exclusive (you only work w one broker)

Question 53

What are the two types of exclusive listings

Answer 53

``` exclusive agency (if the seller sells it themselves you get no commission) exclusive right to sell (doesnt matter who sells it you get paid no matter what) ```

Question 54

lis pendens

Answer 54

lawsuit pending

Question 55

advance fee