4.1 Flashcards
For a contract to be valid, there must be a meeting of the ______.
Minds
To have a valid contract, you must be at least ______ years old, sane, and sober.
18
In contracts, the term “consideration” means ________.
Something of value
True or False:
A contract is valid, even if the purpose is not legal.
False
True or False:
A valid contract may be misunderstood, but cannot be fraudulent.
False
True or False:
A real estate contract must be in writing to be valid.
True
True or False:
For a contract to be enforceable, it must be valid and be enforceable in a court of law.
True
When at least on e of the parties has the right to terminate a contract, it is _________.
Voidable
______ is a term that means to avoid doing something.
Forbearance
_____ is a kind of contract that gives someone the right to purchase a property within a specific period of time.
Option contract
_______ kind of contract is one in which the circumstances imply that parties have reached an agreement, even though they have not done so in writing.
Implied in fact
_____ is a kind of contract that means two parties make a promise to each other.
Bilateral
______ is the process that transfers all rights and obligations from the original owner to the new owner.
Novation
A document page that adds to a contract is called a/an ______.
Addendum
A document page that amends a contract is called a/an ________.
Amendment
______ is a condition that is intended to go into effect, or has the potential of becoming effective, at a future time.
Executory
A legal _______ is when a duty required by the contract cannot legally be performed.
Impossibility
To make a contract enforceable it must be valid, meet all legal requirements, and be binding and enforceable in _____.
Court
If a contract is held to be ______, the contract is considered never to have come into existence.
Void
A contract is _______ if one of the parties has the option to terminate the contract.
Voidable
A/an ______ contract is one in which the terms are expressed in words, either oral or written.
Express
In a _______ contract, only one party to the contract makes a promise.
Unilateral
An _____ of a contract is when a party transfers duties and/or obligations but not responsibility of the contract.
Assignment
A contract transferred by the _____ process transfers all rights and obligations from the original owner to the new owner.
Novation
When both parties have performed their duties under the contract, the contract is _______.
Executed
______ is when both parties agree to cancel the contract.
Rescission
______ of contract is when a binding agreement is not honored by one or more of the parties to the contract due non-performance or interference with the other party’s performance.
Breach
The statute of _____ is a maximum period of time after certain events happen that legal proceedings based on those events may be initiated.
Limitations
Specific _____ is an order of the court that requires a party to perform a specific act.
Performance
_____ is a contractual term that means damages are to be paid to one party if the other party should breach the contract.
Liquidated damages
______ damages means excessive liquidated damages, and are valid under the common law.
Penal
True or False:
Each party must ahve the intent to be bound for a contract to be valid.
True
True or False:
There must be a communicated acceptance of a contract for it to be valid.
True
A debit to the seller on the closing settlement statement _____ the amount of money the seller receives at the closing.
Decreases
A debit to the buyer on the closing settlement statement _______ the amount of money the buyer is responsible for bringing to closing.
Increases
True or False:
Closing statement credits are receipts.
True
A person needing to cross another’s property to reach a road is an example of _______.
Easement by necessity
If a person dies ______ they have a will.
Testate
If a person dies ______ they do not have a will.
Intestate
If a person dies testate his or her interest in the property will be transferred to _____.
The devisee named in his will
The statutory period for adverse possession in Minnesota is ______ years.
15
_______ is the loss of property for nonpayment of debts.
Involuntary alienation
When a person dies, the legal process his or her estate must go through is _______.
Probate
______ is when a decedent dies without leaving a will.
Intestate
______ is the act of giving real property by will.
Devise
