Chapter 11: Real Estate Contracts. Key Terms Part 1

Question 1

Assignment

Answer 1

Transfer of interest in a contract to a third party.

Question 2

Bilateral contract

Answer 2

A contract with a promise by each party.

Question 3

Breach of contract

Answer 3

A violation of the agreements set forth by a contract.

Question 4

Competent parties

Answer 4

Those legally qualified to enter into contracts.

Question 5

Consideration

Answer 5

Something of value given an exchange.

Question 6

Contingency

Answer 6

A certain happening on which a contract depends.

Question 7

Contract

Answer 7

An agreement between two parties to perform some legal act(s).

Question 8

Counteroffer

Answer 8

An offer return to buyer with changes by seller.

Question 9

Earnest money

Answer 9

A buyers deposit with a purchase contract.

Question 10

Equitable title

Answer 10

The Interest acquired by buyer with land contract

Question 11

Escape clause

Answer 11

Protection for seller when a buyer has another house to sell

Question 12

Executed contract

Answer 12

A contract that has been fulfilled.

Question 13

Executory contract

Answer 13

A contract that has not yet been performed. The transfer of title has not yet been completed. When the title transfers the contract is considered executed.

Question 14

Express contract

Answer 14

A contract set down in so many words.

Question 15

Implied contract

Answer 15

A contract not put into words but shown by actions. I.e. filling up your gas tank implies that you are going to pay for the gas.

Question 16

Land contract

Answer 16

The agreement under which buyer pays in installments and waits for the deed upon completion of payments.