Unit 4 - Contracts: the Basics Flashcards Preview

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Flashcards in Unit 4 - Contracts: the Basics Deck (26)
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1

Counteroffer

The rejection of an original offer that becomes a new offer.

2

Offer

A presentation or proposal for acceptance to form a contract.

3

Consideration

Something of value -- such as money, a promise, property, or personal services.

4

Tender

An offer by one of the parties to carry out his or her part of the contract.

5

Statute of Frauds

The law that requires contracts to be in writing.

6

Waiver

The relinquishment or refusal to accept a right.

7

Assignor

The person transferring a claim, benefit, or right in property to another.

8

Specific performance

A court action brought to compel a party to carry out the terms of a contract.

9

Executory contract

A contract in which obligation to perform exists on one or both sides.

10

Revocation

The canceling of an offer to contract by the person making the original offer.

11

Assignee

Party to whom a lease is assigned or transferred.

12

Recission

Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract.

13

Offerer

The party making an offer.

14

Novation

The substitution by agreement of a new obligation for an existing one.

15

Express contract

Parties declare the terms and put their intentions in oral or written words.

16

A written contract takes precedence over oral agreements. This principle is expressed by the

Parol evidence rule

17

The substitution of an obligation or contract with a new one is called...

Novation

18

A _______ contract is an agreement in which each person promises to perform an act in exchange for another person's promise to perform.

bilateral

19

Duress is unlawful and makes the contract void/voidable.

Voidable.

20

According to the ________ __ _________, sufficient writing is required for an enforceable real estate contract.

Statute of Frauds

21

The following items are essential for a valid contract:

1. capacity
2. mutual consent
3. lawful object
4. consideration

22

According to the Statute of Frauds, the employment agreement must be in ___________ to be enforceable.

In writing

23

Tender of Performance:

Is an offer by one of the parties to carry out his or her part of the contract.

24

Forbearance

Forgiving a debt or obligation, or giving up an interest or a right.

25

Contracts are discharged by performance, release, assignment, novation, and ________

breach

26

The statute of limitations is ____ years for actions on any written contract, which includes most real estate contracts.

4