Contract Vocab

Question 1

Unilateral

Answer 1

One sided-offer-option

Question 2

Bilateral

Answer 2

Promises made by two parties- two sided

Question 3

Duress

Answer 3

Contract signed under threat- elder abuse

Question 4

Express Contract

Answer 4

Contract in writing expressing terms

Question 5

Implied Contract

Answer 5

An agreement based on actions of parties

Question 6

Executory Contract

Answer 6

Contract in which something remains to be done

Closing

Question 7

Executed Contract

Answer 7

Closed Contract

Question 8

Execute

Answer 8

To sign contract

Question 9

Addendum

Answer 9

Something added to printed contract to request other things buyer wants like closing cost

Question 10

Amendment

Answer 10

Mend Contract after creation (change closing date)

Question 11

Void Contract

Answer 11

One that did not meet requirements of a valid contract (forged name)

Question 12

Voidable Contract

Answer 12

One that appears to be valid, but may be voided like a minor signing it

Question 13

Minor

Answer 13

Alabama must be 19 or 18 and married to sign contract

Question 14

Earnest Money

Answer 14

Earnest put up earnest money to show he is earnest about deal- not required for valid contract

Question 15

Breach of Contract

Answer 15

One party failed to perform (buyer gets cold feet)

Question 16

Option Contract

Answer 16

Agreement to allow a buyer to purchase or not, at a future date- no contingencies

Question 17

Lease/Purchase

Answer 17

Two Contracts-lease for a period and a Contract

Question 18

Consideration

Answer 18

Something for something

Question 19

Contingency- Inspection, Financing

Answer 19

Provision in contract requiring a certain act be done before contract becomes binding

Question 20

Offer

Answer 20

One party offers to do something for something-one sided

Question 21

Counteroffer

Answer 21

Response to offer with another offer

Question 22

Acceptance

Answer 22

Meeting of the minds

Question 23

Rescission

Answer 23

Canceling of contract-back to original positions

Question 24

Novation

Answer 24

Substituting new contract

Question 25

Breach of contract

Answer 25

Violation of contract without excuse- changed mind

Question 26

Liquidated damages

Answer 26

An amount predetermined as the total damages for breach(probably earnest money)

Question 27

Specific Performance

Answer 27

Legal action to compel a party to fulfill terms of contract

Question 28

Statute of frauds

Answer 28

Law that requires instruments involving real estate to be in writing to be enforceable

Question 29

Instrument

Answer 29

Document

Question 30

Statue of limitation

Answer 30

Law that puts time limits on bringing action in court

Question 31

Time is of the essence

Answer 31

Clause in contract that requires performance within a certain time or breach

Question 32

Laches

Answer 32

Loss of rights due to delay in asserting claim (property inspection)

Question 33

B A R N S A L E

Answer 33

Buy Advertise Rent Negotiate Sell Aid List Exchange

Question 34

Brokerage

Answer 34

Bringing sellers and buyers together for a fee

Question 35

Agent

Answer 35

Person employed to act on behalf of another under agency relationship-fiduciary

Question 36

Antitrust

Answer 36

Price fixing, Goup boycotting, Allocation of customers, Allocation of markets, tie-in agree