Chapter 11 Flashcards
What are the steps for the creation of a contract?
Presented
Accepted
Communicated
What are the essentials of a valid contract?
Offer and Acceptance
Consideration
Statute of Fraud
Requires a contract for the transfer land to be in writing in order to be enforceable
Statute of Limitation
Provides a timeframe in which parties are allowed to bring legal action to enforce rights under a contract.
4 years for oral contracts (parole)
5 years for written contracts
What is an Assignment?
Sale, transfer, or subrogation of rights in a contract
What is an implied contract?
Implied contract has nothing in writing, but is assumed due to the actions taken by the parties involved.
What is a void contract?
A contract that is unenforceable, likely contains illegal items
How can an offer be terminated?
Acceptance - offer moves to a contract
Withdrawal - offeror withdraws their offer
Rejection or counteroffer - when a counteroffer is made, the original offer is gone and the person making the counteroffer becomes the offeror.
What types of lawsuits can be brought on for breach of contract?
Suit of Performance
Suit of Damages
What is a suit of performance?
The suing party asks the court that the breacher performs the duties agreed upon in the contract
What is a suit for damages?
The injured party can sue for monetary compensation
What are liquidated damages?
The parties agree to the penalty imposed on whomever breaches the contract. Usually seller gets to keep money from the broker’s escrow fund in the case of a breach of contract by the buyer
As is contract
Seller needs to disclose material defects, even though they are not making any repairs
What is an exclusive right of sale listing?
Bilateral contract in which the property owner agrees to pay commission to the employed broker regardless of who sells the house.
Which type of listing contract gives the broker the best protection?
Exclusive right of sale listing
