contracts

Question 1

requires certain contracts to be in writing to be legally enforceable

Answer 1

statute of frauds

Question 2

occurs when the parties enter into agreement voluntarily with full understanding of contract terms

Answer 2

offer and acceptance

Question 3

something of LEGAL value offered by one party and accepted by another

Answer 3

consideration

Question 4

the concept that if a court deems A TERM in the contract to be unenforceable, the remainder of the contract remains enforceable

Answer 4

severability

Question 5

a contract that appears valid, but one or both parties have a legal right to disaffirm it

Answer 5

voidable contract

Question 6

a contract that isn’t a contract at all because it lacks one or more of the requirements for a valid contract. It has no legal force or effect; its unenforceable.

Answer 6

a void contract

Question 7

a contract in which all parties have met all contract terms

Answer 7

an executed contract

Question 8

contracts are _____ until all of the promises in the contract have been completed

Answer 8

executory

Question 9

occurs when one party fails to meet contract obligations

Answer 9

breach of contract

Question 10

when one party meets SOME but not all of the terms of the contract

Answer 10

partial performance

Question 11

when a breach occurs, the innocent party may unilaterally terminate the contract. this is known as ____

Answer 11

unilateral rescission

Question 12

a ______ _________ suit seeks to force a party to make good on the promises made

Answer 12

specific performance

Question 13

a _______ ________ clause limits buyer damages to a return of the earnest money if the seller breaches contract

Answer 13

liquidated damages

Question 14

when parties have met all contract terms and are discharged from their contractual obligations

Answer 14

contract discharge AKA performance, execution

Question 15

when one party agrees in WRITING that the other party is no longer held to the provisions of the agreement this is called _______

Answer 15

release

Question 16

parties to the contract may terminate the contract through ______ ________. this is best accomplished through mutual written release

Answer 16

mutual agreement

Question 17

_______ means to transfer contractual rights or duties to a new party

Answer 17

assignment

Question 18

occurs when one contract is substituted for another

Answer 18

novation

Question 19

the ________ _______ ________ is an attempt to bring some degree of standardization to state laws regarding use of electronic documents and signatures. It gives electronic signatures, records, and contracts the same legal weight as paper records with “wet” signatures

Answer 19

the Uniform Electronic Transactions Act

Question 20

in a _____ contract, both parties have obligations

Answer 20

bilateral

Question 21

in a ____ contract, only one party makes a promise

Answer 21

unilateral

Question 22

the contract clause that means both parties faithfully agree to perform responsibilities within the time limits of the contract

Answer 22

time is of the essence

Question 23

the contract clause that specifies that any dispute arising under the contract shall be determined in accordance with the law in a particular jurisdiction

Answer 23

choice of law

Question 24

the contract clause that means one or both parties commit to compensate the other for any harm, liability, or loss arising out of the contract

Answer 24

indemnification

Question 25

these type of contract clauses define a condition or action that a party must meet in order to not be in breach of contract

Answer 25

contingency clauses

Question 26

a ____ clause requires the parties to resolve or attempt to resolve their disputes through an arbitration process

Answer 26

arbitration

Question 27

a _____ clause requires the parties to attempt mediation prior to engaging in arbitration or a legal action

Answer 27

mediation

Question 28

a ______ ________ clause states the time frame in which a party can file a lawsuit relative to the contract

Answer 28

statue of limitations

Question 29

an addition to an existing document is a

Answer 29

addendum

Question 30

a change to an existing contract is a

Answer 30

amendment

Question 31

the party extending the offer is the

Answer 31

offeror

Question 32

the party receiving the offer is the

Answer 32

offeree

Question 33

_____ occurs when all parties have signed a contract

Answer 33

acceptance

Question 34

_____ _______ occurs when the signed contract is delivered back to the offeror

Answer 34

binding acceptance

Question 35

conditions that must be met before the agreement of sale is complete and enforceable

Answer 35

contingencies

Question 36

requires mortgage lenders to follow TILA disclosure requirements for real estate advertisements that include credit terms

Answer 36

regulation Z

Question 37

a U.S. federal law that requires disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed

Answer 37

Truth In Lending Act of 1968 (TILA)

Question 38

a consumer protection statute designed to protect homebuyers from unscrupulous lending and settlement practices such as kickbacks and referral fees

Answer 38

the Real Estate Settlement Procedures Act of 1974 (RESPA)

Question 39

prohibits lenders from making credit unavailable or offering less-favorable terms based on protected class status vs. creditworthiness

Answer 39

the Equal Credit Opportunity Act of 1974 (ECOA)

Question 40

TRID is an acronym for

Answer 40

TILA/RESPA Integrated

Question 41

lenders must provide the _______ to applicants within three business days of loan application.

Answer 41

loan estimate

Question 42

lenders must provide the _______ at least three business days before closing

Answer 42

closing disclosure

Question 43

a loan category that has certain affordability features

Answer 43

qualified mortgage

Question 44

unfair or abusive lending to buyers that imposes deceptive, coercive and exploitive practices to take advantage of consumers to increase their debt while financing risky loans

Answer 44

predatory lending

Question 45

the borrower's projected monthly housing expense divided by income

Answer 45

housing ratio AKA front end ratio

Question 46

the total of all the buyer's debt obligations divided by income

Answer 46

debt to income ratio AKA back end ratio