Contacts Flashcards
(15 cards)
What are the 4 essential elements of a valid contract?
Competent parties, mutual consent, lawful objective, consideration.
Which contracts must be in writing under the Statute of Frauds?
Real estate contracts, leases over 1 year, and agreements involving sale of land.
What is a voidable contract?
A contract that can be canceled by one party (e.g., minor, fraud, duress).
What makes a contract void?
Illegal purpose or missing essential elements.
What’s the difference between an option contract and a purchase agreement?
Option gives the right (not obligation) to buy; purchase agreement is a binding sale contract.
What does “time is of the essence” mean in a contract?
Deadlines are legally enforceable and must be met.
What is earnest money?
A deposit showing buyer’s serious intent, applied toward purchase price.
What are common termination methods of a contract?
Performance, mutual agreement, impossibility, operation of law, breach.
What is the SRPD and when is it required?
Seller’s Real Property Disclosure; required in most Nevada residential sales.
What is a contingency clause?
A condition that must be met for the contract to proceed (e.g., financing, inspection).
What happens when a counteroffer is made?
It rejects the original offer and presents a new one.
When does an offer become a binding contract?
When it is accepted and the acceptance is communicated.
What are liquidated damages in a contract?
A: Pre-agreed amount of money paid if one party breaches.
What disclosures are required in Nevada real estate?
A: SRPD, agency disclosure, lead-based paint (pre-1978 homes), and material facts.
What must a Nevada listing agreement include?
Start/end date, broker duties, seller authorization, compensation terms.
