Contracts Flashcards
(17 cards)
what is a contract
A legally enforceable agreement between two or more parties.
What are the essential elements of a valid contract?
Offer, acceptance, consideration, legal capacity, lawful purpose, mutual assent.
What is an express contract?
A contract where terms are explicitly stated orally or in writing.
What is an implied contract?
A contract formed by actions or conduct, not explicit words.
What is bilateral contract?
A contract where both parties make promises (most real estate contracts).
What is a unilateral contract?
A contract where only one party makes a promise (e.g., option contract).
What is consideration?
Something of value exchanged between parties (money, services, promises).
What is mutual assent?
Both parties agree on the terms and intend to be bound (also called “meeting of the minds”).
What is a void contract?
A contract with no legal force (e.g., illegal purpose).
What is a voidable contract?
A valid contract that can be voided by one party (e.g., signed under duress).
What is an unenforceable contract?
A valid contract that cannot be enforced legally (e.g., due to Statute of Frauds violation).
What is a breach of contract?
Failure to perform contractual obligations without legal excuse.
What is liquidated damages?
Predetermined amount of money set in contract to be paid if breach occurs.
What is novation?
Replacing an old contract with a new one or substituting parties.
What is assignment?
Transferring contract rights and obligations to another party.
What is earnest money?
A buyer’s deposit showing good faith in making an offer.
What is a contract of sale (purchase agreement)?
A contract where the seller agrees to sell and buyer agrees to buy real property.
