Basic Contract Law Concepts Flashcards
Express Contract
May be oral or written, clearly states terms of agreement between parties
Implied Contract
Determined by actions of the party rather than express agreement
Bilateral contract
One in which parties are obligated to one another
Unilateral Contract
Only one party is obligated to act
Voidable contact (can avoid if desire)
One or both parties have option to avoid
Void Contract
Not a contract because it lacks legality
Invalid Contract
Contract missing an essential legal element
Addendum
An addition to an existing contract
Ammendment
A change to an existing contract (changes original)
Essential elements of valid contract
Offer, acceptance, consideration, legally competent persons, legal purpose
Offer and Acceptance
Requires mutual agreement of terms
Consideration
Something of value, including a promise to do/not do something
Preemption right
Right of first offer. Gives tenant who has held lease 3 or more years first right to enter new lease or buy property
Executed contract
Parties have met all terms
Executory contract
Contract in progress, one or more terms remain undone
Auction contract
Supersedes a listing agreement
With Reserve
Auction sale conditional upon meeting minimum sale price
With Reserve
Auction sale conditional upon meeting minimum sale price
Without reserve
No minimum sales price
Statute of Frauds
Contracts involving creation or conveyance of real property must be in writing to be enforceable
Uniform Electronic Transaction Act (UETA)
Gives e-sigs and docs the same weight as paper writing and sigs
Performance of a contract
When all contract terms and conditions have been met
Time is of the essence
Parties will proceed in good faith and try not to unduly delay process
Discharge of a contract
Includes partial performance, specific performance substantial performance, impossibility of performance and operation of law
Partial performance
One or more parties did not meet all terms of contract. (Other party can decide whether to accept or not)
Specific performance of contract
Requirement to meet the terms of the contract exactly
Substantial performance
Most but not all requirements have been met, party not meeting may be required to pay damages
Impossibility of performance
Parties cannot legally or practically do what they agreed (then released from obligations)
Operation of law
How an individual can automatically acquire rights or liabilities due to law, not an agreement or act of their own
Assignment of a contract
Contractual obligation transferred from one to another
Novation of contract
The substitution of one party for another in an agreement (original party released from obligations)
Breach of contract
Failure of one party to meet one or more terms
Fraud
Trickery or deceit to induce someone to do something (conceal material facts, false info, trickery)
Misrepresentation
False statement of a material fact in real estate transaction, intentionally or through lack of care.
