Chapter 11 vocab Flashcards
A voluntary legally enforceable promise between legally competent parties to perform(or refrain from performing) some legal act
Contract
A contract in which the parties state their intentions in words
Express contract
A contract established by the acts and conduct of the parties
Implied contract
A contract in which both parties promise to perform some act
Bilateral contract
an agreement having one promise
Unilateral contract
The contract that has been completely performed
Executed contract
The status of a real estate sales contract prior to closing
executory contract
The person who accepts the offer in a contract
Offeree
Complete agreement about the purpose and terms of a contract
Mutual assent
something of legal value offered by one party, and accepted by another as an inducement to act or refrain from acting
Consideration
A contract that is without legal force or effect, because it lacks one or more essential elements
Void
The transfer of rights or duties under a contract
Assignment
The substitution of a new contract to replace an earlier one
Novation
A violation of any of the terms or conditions of a contract without legal excuse
Breach
A new offer that rejects the original offer
Counter offer
A deposit customarily made by a prospective purchaser when making an offer
Earnest money
The interest held by a buyer prior to delivery and acceptance of the deed
Equitable title
an amount of money that the parties agree will be the complete compensation available in the event of a breach
Liquidated damages
additional conditions that must be satisfied before a property sales contract is fully enforceable
Contingencies
Parties must be of legal age and have a mental capacity to understand the consequences of their actions in the contract
Legal capacity
