Chapter 11 real estate contract Flashcards
agreement between two parties to perform some legal act
Contract
violation of a contract
Breach of contract
buyer’s deposit with purchase contract
Earnest money
certain happening in which a contract depends
contingency
contract not put into words but shown by actions
implied contract
contract set down in so many words
express contract
contract that has been fulfilled ( all parties have sign)
Executed Contract
contract that has not yet been performed (something to be done)
Executory Contract
contract with a promise by each party (broker and seller written contract)
Bilateral contract
interest acquired by buyer with land contract
Equitable title
offer returned to buyer with changes by seller
Counteroffer
protection for seller when buyer has another house to sell
Escape Claus
something of value given in exchange
Consideration
those legally qualified to enter into contracts
Competent party
transfer of interest in a contract to a third party (sublet or sub rent)
Assignment
agreement under which buyer pays in installments and waits for deed
Land contract
contract binding one party , other party free to act or not
Option
seemingly valid contract but neither party can sue to force performance (drunk story )
Unenforceable contract
contract clause requiring punctual performance (contracts have beginning and end ) need to be done within the time limit
time is of the essence
return to the status quo
Rescission
contract that does not meet all legal requirements
Void Contract
contract that is binding, but one party may disaffirm it (minor may cancel)
voidable contract
contract that meets all legal requirements (binding by both parties)
valid contract
court action usually asking that the seller be force to sell as agreed (action mostly done by a buyer)
Specific performance
time within which one is allowed to assert a legal right
Statue of Limitation ( 6 years period )
law requiring certain contracts to be in writing
statue of fraud
one sided promise, valid only if the other party acts (Reward)
Unilateral Contract
convention that a written contract overrides spoken promises
Parol evidence rules
substitution of a new contract for an existing one (no liability)
Novation
sum agreed on to serve as damages in case of future default (action mostly done by the seller)
Liquidated damages
meeting of the minds
Offer and acceptance
contract signed by a person (force)
Under Durres or undue influence
