9 - Basic Contract Law (12/0)

Question 1

Contract Requirements

Answer 1

Mutual assent (offer and acceptance), competent parties, consideration and it must be for a legal purpose

Question 2

Liquidated Damages

Answer 2

Agreed upon amount stated in a contract that parties agree to accept in the event of a breach

Earnest money is the amount given as liquidated damages

Question 3

Statute of Frauds

Answer 3

Requires contracts that contain a right or interest in real property to be in writing in order to be enforceable

vs. listing agreements and buyer broker agreements (employment agreements), which need to be in writing due to COMMISSION RULES

Question 4

Unilateral Contract

Answer 4

Only one party is bound to perform (Lost Dog poster)

Question 5

Specific Performance

Answer 5

legal remedy to enforce the terms of a contract

Question 6

Rescission

Answer 6

Nullification, the termination of a contract

Question 7

Executory contract vs. executed contract

Answer 7

contract where there are still items yet to be performed vs. one where all of the terms have been completed