1 - Contract Law Overview

Question 1

A contract that meets all of the requirements of the law.

Answer 1

Valid Contract

Question 2

A contract that is invalid from the beginning and does not affect the parties.

EX: A contract to perform an illegal act

Answer 2

Void Contract

Question 3

A contract that cannot be enforced against one or more of the parties.

EX: contracts that are entered with minors.

Answer 3

Voidable Contract

Question 4

A contract that cannot be enforced due to some flaw in the contract, passage of time, or other issues that make enforcement impossible.

Answer 4

Unenforceable Contract

Question 5

For a contract to exist there must have been “a meeting of the minds” (offer and acceptance) between the parties.

Answer 5

Mutual Consent

Question 6

All contracts must be legal in order to be valid.

EX: a contract would be deemed void if it was to have someone killed or deliver illegal drugs

Answer 6

Legal Purpose

Question 7

In order to comply With the statute of frauds, contracts for the conveyance of an interest in real estate or lease is for a term of more than one year must be __ _______.

Answer 7

In Writing

Question 8

Something given in exchange for a promise.

Answer 8

Consideration

Question 9

A contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed.

Answer 9

Executory Contract

Question 10

A contract of sale between a buyer and a seller we’re both parties have made promises; therefore, both parties have duties to perform.

Answer 10

Bilateral Contract

Question 11

An agreement between a buyer and a seller or landlord and a tenant.

Answer 11

Option

Question 12

A contract where only one party has to perform. Said to lack mutuality

Answer 12

Unilateral Contract

Question 13

• changes to the closing date
• changes to the sales price, down payment and/or amount financed.
• I repairs that the seller agrees to perform
• removal or waiver of contingencies

Answer 13

Amendment

Question 14

an attachment that adds or further describes the rights and duties of the parties

Answer 14

Addendum

Question 15

A part of the contract that transfer all of the rights related to the contract to another party known as the assignee. The assignee assumes primary liability for performance under the contacts and the assignor, unless released, remains secondarily liable.

Answer 15

Assignment

Question 16

Occurs when a new contract is substituted for an existing one. The new agreement may include new parties. Can also happen when the original one has been so marked up that they replace it with a new one.

Answer 16

Novation

Question 17

A contract is _____ when further performance of Duties under the agreement is brought to a premature end.

EX:

• Mutual agreement
• partial performance
• substantial performance
• impossibility
• operation of law
• breach of contract

Answer 17

Termination

Question 18

Both parties need to be of sound mind, comprehend the contract and not be under the influence of any drugs or alcohol.

Answer 18

Competent Parties

Question 19

During Stature of Limitations, Failure to file suit within the time allowed will result in the party losing his or her rights under the contract. This is called

Answer 19

Doctrine of Laches

Question 20

All states have limitation of time in which an individual may file suit in court for damages because the party breach the contract.

In texas, the Statute of limitations is two years for an oral agreement and four years for a written.

Answer 20

Statute of Limitations