Real estate contracts (...)

Question 1

Are real estate contracts required to be witnessed or notarized?

Answer 1

no

Question 2

Are real estate contracts recorded?

Answer 2

no

Question 3

What are the elements of a valid and enforceable real estate sale contract (COLIC)?

Answer 3

• C - competent parties
• O - offer & acceptance (meeting of the minds)
• L - legal purpose
• I - In writing and signed (statute of frauds)
• C - consideration (valuable or good)

Question 4

Void contracts lack ____ of a valid contract and have no legal effect.

Answer 4

one or more required elements

Question 5

What is a voidable contract?

Answer 5

allows one of the parties to potentially disavow contractual duties

A voidable contract remains valid until the party with the option chooses to void it.

Question 6

What is an unenforceable contract?

Answer 6

Appears to have all essential elements but cannot be enforced in court because the statute of frauds or the statute of limitations has passed

An unenforceable contract may seem valid but lacks legal enforceability.

Question 7

A formal contract is (written/verbal) and under seal.

Answer 7

written

A formal contract typically involves a written document that is legally binding.

Question 8

A fill-in-the-blank contract on a preprinted form is also considered to be a _______ contract.

Answer 8

formal

Fill-in-the-blank contracts follow a formal structure and are legally recognized.

Question 9

An informal (parol) contract is a (written/verbal) agreement.

Answer 9

verbal/oral

Informal contracts can be made through spoken agreements and are often harder to prove.

Question 10

Bilateral obligates (only one party/both parties).

Answer 10

both parties

In a bilateral contract, both parties have obligations to fulfill.

Question 11

Unilateral obligates (both parties/only one party) and is also called an _____ contract.

Answer 11

• only one party
• option contract

Unilateral contracts involve a promise from one party, often contingent on an action by the other.

Question 12

When does an express contract exist?

Answer 12

at the time parties enter into and communicate the terms of an agreement

Express contracts are explicitly stated and agreed upon by the parties.

Question 13

When does an implied contract exist?

Answer 13

when some of the conditions may be reasonably implied

Implied contracts arise from actions or circumstances rather than written or spoken words.

Question 14

Executory contracts involve promises to be completed when?

Answer 14

At a future date - the time between sales contract signing and title conveyance

Executory contracts are in progress and have not yet been fully performed.

Question 15

What is an executed contract?

Answer 15

• Has performed its obligations already
• Nothing remains to be done by either party

An executed contract is one that has been fulfilled in its entirety.

Question 16

What happens to offeror/offeree when there is a counteroffer?

Answer 16

parties switch roles

A counteroffer effectively rejects the original offer and establishes new terms.