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Flashcards in Contracts / Purchase And Sale Agreement Deck (42):
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Acceptance

The agreement of one party to a set of terms offered by a second party

1

Assignment

The transfer of rights and interests in property from one person to the other example Assignment of purchase and sale agreement or a mortgage

2

Bilateral contract

A contract where one party agrees to do something in return for the second parties promise to also do something

3

Bill of sale

A written contract between two parties for the sale of personal property

4

Competency

The state of having legal contractual capacity

5

Consent

One agreeing to terms of a contract does so without duress demonstrated by a notary public taking parties acknowledgment that this is their free act and deed

6

Conservator

An individual appointed by the court to act as a guardian

7

Consideration

Something given in exchange for something from another. Can be an article or a promise to do something. In real estate is usually money exchange for the property As in A deed or money in exchange for a promise to perform as in a purchase and sale agreement

8

Counter offer

The one receiving an offer( offeree )responds by offering a new set of terms as a new offer. The original offeree then becomes the new offer

9

Deed

Written instrument that transfers ownership of real property from one party to another

10

Disclosure

One of the duties of agency ( also known as duty of notice ) that requires an agent to keep his or her principal informed of any matter that is In principals interest

11

Equitable title

Interest held by the buyer when a purchase and sale contract has been signed but prior to transfer of a deed when legal title is obtained

12

Estoppel

Concept where a party cannot exercise rights contrary to a previous representation. Example. A town water bill relied on by a new owner could be challenged by Estopel when a new Higher bill is charged

13

Executed contract

A contract with all parties have fulfilled all terms

14

Executory contract

A contract that has not had the terms completed by one or both parties.

15

Express contract

A contract where the intent of the parties is clearly stated. Maybe verbal or written.

16

Right of first refusal

Right to have the first chance to purchase or lease a piece of property. May or may not specify additional terms such as price

17

Implied contract

A contract with the agreement of the parties is demonstrated by There acts conduct and not by their words or written agreements

18

Lease

An agreement ( written or verbal ) between an owner ( Lessor) and a tenant ( leasee ) to grant the exclusive rights of occupancy to real property for specific period of time

19

Laches

Doctrine that action was not taken in a reasonable period of time. Similar to statute of limitations where time is specified

20

Legal title

Interest obtained by the grantee when the deed is signed and delivered ( compared to equitable title )

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Legality

Quality of being within law. A contract with an illegal element is void

22

Listing agreement

An agreement between seller and a broker to act as an agent for the sale of real property. Maybe written or verbal

23

Mortgage deed

Conditional conveyance of the property to the bank subject to the borrowers rights of redemption. Refers to as the mortgage

24

Mortgage note

The written promise to pay money borrowed against real property as security

25

Novation

A new obligation is substituted for an old obligation ( a bank accepting a new note with a new mortgagor all for an old note would do so by novation )

26

Offer

A promise by one party to act in a specified Manner providing a second party acts in the manner requested.

27

Offeree

Party receiving an offer from another party( buyer or seller )

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Offeror

Party extending an offer to another party (buyer or seller )

29

Option

An agreement to keep that offer to purchase or to sell open for some period of time. The party agreeing to the option terms ( usually the seller ) is bound by the option but not the party making the option offer ( usually the buyer ).

30

A written document authorizing one person to act for another to what ever extent specified

Power of attorney

31

Purchase and sale agreement

A written contract for the sale of real property between two parties ( seller and buyer. )

32

Specific performance

A remedy at law with the court will force a party to fulfill his or her part of a contract

33

Statute of frauds

State law that requires certain documents to be in writing to be enforceable

34

Statue of limitations

The time limit within which legal action must be taken to be enforceable. Example In Massachusetts the statue limitations on a prescription and adverse possession is 20 years

35

Suit for damages

One of the legal remedies in the case of a contract default or nonperformance. Suit to recover compensation for financial losses suffered due to the contract nonperformance

36

A contract where one party makes a promise to perform without a second party promise to perform. Example reward for lost property

Unilateral contract

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Valid

Having legal ,binding force

38

Void

Having no binding legal force

39

Voidable

Having binding force but able to be broken by one of the parties

79

Duress

Force applied to make someone act against his will

80

Caveat Emptor

A principle in law that means " let the buyer beware"