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Flashcards in Contracts 3 Deck (39)
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1

Com______ P_____

Legally Capable Individuals Who Can Enter into a Binding Contract are called?

Competent Parties -

Legally Capable Individuals Who Can Enter into a Binding Contract

Chap 3

2

Emp______ Agr_______

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3

Employment Agreement -

Used to Hire a Broker to Provide Services Aiding the Purchase/Sale or Real Property for Compensation.

Examples: Listing Agreement or Buyer Broker Agreement

Chap 3 

3

C______ (Must Be In Writing Per Statute of Frauds)

Examples

  1. Agreements Hiring Broker to Sell or Purchase Property.
  2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
  3. Lease for More than 1 Year.

Contracts (Must be in Writing Per Statute of Frauds)

Examples

  1. Agreement Hiring Broker to Sell or Purchase Property.
  2. Agreements to Transfer or Sell Interest therein (Deeds, Purchase Contract, Mortgages, Trust Deeds and Options).
  3. Lease for More than 1 Year.

4

Essential Elements of a Contract

  1. Comp_____ Parties,
  2. Val___ Consideration,
  3. Of___ and Acceptance,
  4. Leg___ Object, 
  5. In Writ___ (Statute of Frauds)
  6. Property Des_____

Essential Elements of Contract

  1. Competent Parties,
  2. Valid Consideration,
  3. Offer and Acceptance,
  4. Legal Object, 
  5. In Writing (Statute of Frauds)
  6. Property Description

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5

Exp_____ Contract -

Terms Specifically Stated Verbally or In Writing

Expressed Contract -

Terms Specifically Stated Verbally or In Writing

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6

Imp_____ Contract -

Created by Actions or Conduct of Parties

Implied Contract -

Created by Actions or Conduct of Parties

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7

 

  1. This Agreement Gives Opportunity to Lease or Buy Within a "Specific Time" for a "Specific Price" and Terms."
  2. It is Only Binding on the Optionor (Owner).
  3. If Optionee Wants to Extend, There is Additional Consideration Required.

Option -

  1. This Agreement Gives Opportunity to Lease or Buy Within a "Specific Time" for a "Specific Price" and Terms."
  2. It is Only Binding on the Optionor (Owner).
  3. If Optionee Wants to Extend, There is Additional Consideration Required.

Chap 3

8

If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Right of First Refusal -

If Seller Decides to Lease or Sell, Holder Can Match the Offer Given to Owner.

Chap 3

9

Contain All Essentials of Contract

Valid Contract -

All Essentials of Contract

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10

Not Enforceable by Law, No Contract

Void or Invalid Contract -

Not Enforceable by Law, No Contract

Chap 3

11

Can be Overturned by One of the Parties.

Voidable Contract -

Overturned by One of the Parties

Chap 3

12

 

Not Shared with Others Nor Put on MLS

Pocket Listing -

Not Shared with Others Nor Put on MLS

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13

 

  1. No Cooperation Offered to Other Companies, but All Offers Presented.
  2. Buyer's Agent May Need Separate Compensation Agreement

Exclusive Listing -

  1. No Cooperation Offered to Other Companies, but All Offers Presented.
  2. Buyer's Agent May Need Separate Compensation Agreement

Chap 3

14

Buyer uses to Hire Broker to Locate Properties.

Buyer Broker Agreement -

Buyer uses to Hire Broker to Locate Properties.

Chap 3

15

Com______ Lien

Lein in AZ, for Unpaid Moneys, may be placed on Seller's Property, Commercial Leases Only

Commissions Lien -

Lein in AZ, for Unpaid Moneys, may be placed on Seller's Property, Commercial Leases Only

Chap 3

16

Sh______ An______ A___

  1. Prohibits Anti-Competitive Practices.
  2. No Fixed Commissions or Prices.
  3. Commissions are Negotiable.
  4. No Geographical Non-Compete Areas.
  5. No Boycotting Other Company Listings

Sherman Anti-Trust Act -

  1. Prohibits Anti-Competitive Practices.
  2. No Fixed Commissions or Prices.
  3. Commissions are Negotiable.
  4. No Geographical Non-Compete Areas.
  5. No Boycotting Other Company Listings

Chap 3

17

Cov______ Not to C_______

Promise by Seller of Business, "Not to Compete" with Buyer of Business in Agreed Area for a "Specific Time."

Covenant Not to Compete -

Promise by Seller of Business, "Not to Compete" with Buyer of Business in Agreed Area for a "Specific Time."

Chap 3

18

Illu_____ Contract

Contract Worded Loosely

Illusory Contract -

Contract Worded Loosely

Chap 3

19

 

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Statute of Frauds -

Regulation that says Contracts Must Be In Writing to be Enforceable and Signed by All Parties / Authorized Agents

Chap 3

20

Agreements that Must Be In Writng - (As per Statute of Frauds) -

  1. Emp______ Agreement with Broker
  2. Lis_____ Agreement
  3. B_____ Broker Agreement
  4. Pur_____ Agreement
  5. De___
  6. Tr____ Deeds & Mortgages
  7. L____ - More than 1 year

Agreements that Must Be In Writng - (As per Statute of Frauds) -

  1. Employment Agreement with Broker
  2. Listing Agreement
  3. Buyer Broker Agreement
  4. Purchase Agreement
  5. Deeds
  6. Trust Deeds & Mortgages
  7. Lease - More than 1 year

Chap 3

21

 

Money or Valuables such as Labor, Love or Affection (Gift)

Valid Consideration -

Money or Valuables such as Labor, Love or Affection (Gift)

Chap 3

22

Of____ and Ac_______ -

All Parties Must Agree to All Terms -A Meeting of The Minds

Offer and Acceptance -

All Parties Must Agree to All TermsA Meeting of The Minds

Chap 3

23

L_____ O______

The Objective of the Agreement Must be Lawful.

Legal Object (Legal Purpose) -

The Objective of the Agreement Must be Lawful.

Chap 3

24

 

All the Terms Have Been Performed by All Parties

Executed Cotract -

All the Terms Have Been Performed by All Parties

Chap 3

25

 

All Terms Have Not Been Fully Performed In A Purchase Contract. What Type of Contract?

Executory Contract -

All Terms Have Not Been Fully Performed In A Purchase Contract

Chap 3

26

A Promise is Made By (One Party) In Return For the Promise of Another

Examples

  1. Listings
  2. Purchase Contracts
  3. Leases

Bilateral Contract -

A Promise is Made By (One Party) In Return For the Promise of Another

Examples

  1. Listings
  2. Purchase Contracts
  3. Leases

Chap 3

27

One Party Makes Promise to Induce Other Party Into Action

Examples:

  1. Option: Right to Buy in Specific Period/Time/Price
  2. Right of First Refusal: "If Offered for Sale," 1st Right 

Unilateral Contract -

One Party Makes Promise to Induce Other Party Into Action

Examples:

  1. Option: Right to Buy in Specific Period/Time/Price
  2. Right of First Refusal: "If Offered for Sale," 1st Right 

Chap 3

28

R______ E____ Emp_____ Contract

Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.

Must Contain:

  1. Inception Date
  2. Expiration Date
  3. Signed by All Parties
  4. Cannot not be Re-Assigned to 3rd Party

Real Estate Employment Contract -

Written Agreement Authorizing / Employing an Agent and Broker to Purchase or Sell Property For Compensation or Commission.

Must Contain:

  1. Inception Date
  2. Expiration Date
  3. Signed by All Parties
  4. Cannot not be Re-Assigned to 3rd Party

Chap 3

29

O____ Listing -

Listing Broker will be Paid a Commission only if He/She Finds a Buyer for the Property

Note: 

1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.

 

Open Listing -

Listing Broker will be Paid a Commission only if He/She Finds a Buyer for the Property

Note: 

1. Listing Broker Not Paid If Another Broker Finds Buyer or If Seller Sells Property.

Chap 3

30

Ex______ A_____ L_______ -

The Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer. What type of listing?

*** Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.

Exclusive Agency Listing -

The Listing Broker will be Paid a Commission if He/She Finds a Buyer, or If Another Broker Finds a Buyer. What type of listing?

*** Seller Reserves the Right to Sell Property to Buyer Witout Paying Commission.

Chap 3