Chapter 12 - B3

Question 1

Implied contract

Answer 1

Creating a contract with our actions and contract. Leases or less than a year cannot be implied

Question 2

Bilateral contract

Answer 2

Two sided. Both sides are obligated. Exclusive right to sell. Seller has to pay. Realtor has to sell.

Question 3

Unilateral contract

Answer 3

Only one person is obligated. Ex: buyer has an option to buy at a set price. Ex; open listing

Question 4

Executory contract

Answer 4

A contract where terms and conditions have not been met. Ex: anything in escrow is executory.

Question 5

Expressed contract

Answer 5

Agree to the terms and conditions. Can be verbal or in writing.

Question 6

Optionee

Answer 6

Buyer

Question 7

Optioner

Answer 7

Seller

Question 8

Equitable title

Answer 8

Buyer owns equitable title

Question 9

Executed contract

Answer 9

Both parties fulfill all obligations. Once its executed, the buyer owns legal title

Question 10

Valid

Answer 10

Means legal, binding, enforceable. If someone dies the contract is valid. Its the estate responsibility to fulfill the contract if seller dies. Bad broker sucks, its still a valid contract

Question 11

Void

Answer 11

When there’s something illegal. Which means it never existed.

Question 12

Voidable

Answer 12

Is rescindable by one of the parties. Typically not the party in the breach. Its voidable against the incompetent party.

Question 13

Unenforceable

Answer 13

Missing signatures. If seller never signed it, can she sell the property? Yes
Spouse- if one spouse does sign.
Also missing legal description.
Also verbal real estate contracts.
Could seller and buyer have a verbal contract? Yes. It is not void. Not valid. Not Voidable. It is Unenforceable.

Question 14

Illusory contract

Answer 14

Appears to be a contract but not.

Question 15

Duress, collusion, menace

Answer 15

Seller tells buyer if you dont sign the contract ill break your knee.

Question 16

Statue of fraud

Answer 16

All real estate contracts must be in writing. This statue cannot be forgery.

Question 17

Exceptions

Answer 17

Statue of fraud exception - Leases of one year or less can be valid.

Question 18

Equal dignity rule

Answer 18

The authority given to an agent has to be in writing

Question 19

Forgery

Answer 19

Statute of fraud cannot be forgery.

Question 20

Parol evidence rule

Answer 20

Written proceeds oral. The written agreement over the oral agreement.

Question 21

Competent parties

Answer 21

Individuals- natural persons who are 18years and over 18years. Under 18 are incompetent.

Legally Married couple or community

Question 22

Incompetent

Answer 22

Individuals- natural persons who are under 18years.

Any person who is sober while signing contract. Liquor, medication, illicit

Question 23

Remember this point

Answer 23

The judge can only say if party are incompetent.

Question 24

Infancy

Answer 24

You have to be 18 otherwise you are considered infancy

Question 25

Majority

Answer 25

You have to be 18years

Question 26

Personal representative

Answer 26

Refer notes

Question 27

Attorney-in-fact

Answer 27

Person with the power of authority

Question 28

Misrepresentation

Answer 28

False statements. Distortion of fact. A LIE. Lie by omission- in the state of az, if you are silent when asked a question, then your answer is a NO.

Do not represent schools or crimes. Point them to information, dont give your opinion.

Question 29

Fraud

Answer 29

Deception for personal gain or to harm another. Steps to fraud is Intent.

Question 30

Collusion

Answer 30

Two or more to harm.

Question 31

Undue influence

Answer 31

Taking a position of power

Ex: if you want to keep the job, i want you to buy my house. Otherwise i will fire you. - this is taking power.

Question 32

Duress

Answer 32

An implied threat.

Ex: if you dont buy my house, you will go missing. It is implied.

Question 33

Menace

Answer 33

You will go missing if you dont buy my house. No longer implied. It is direct physical harm.

Question 34

Bonafide

Answer 34

Good faith

Question 35

consideration

Answer 35

What you give in exchange for what you are giving. It must be legal.

Question 36

Good consideration

Answer 36

Have to be something in return. The problem with this is, its not durable. Illegal service- Love, affection, friendship. You cannot these to anyone. You are doing illegal service, you buy a house

Question 37

Valuable consideration

Answer 37

Property with all the goods- personal property real property epersona.

Question 38

Convey, transfer, sell, give

Answer 38

All these mean the same.

Question 39

Legal description

Answer 39

1. Meets and bounds- using landmarks to define the property. Problems- landscape changes, tree dies, rivers move.
2. rectangular survey.
3. lots and block. - you go to a county…you see lots rectangular. You to subdivision…you see triangles etc.

Question 40

Offer

Answer 40

Not a contract. Where one party promises to perform

Question 41

Offeror

Answer 41

Is the one giving the offer. Not always the buyer or the seller.

Question 42

Offeree

Answer 42

Is the one recieving the offer. Not always the buyer or the seller.

Question 43

Counter-offer

Answer 43

Conditional or qualified acceptance. Which is to say ill accept everything except some- like price or escrow date. It terminates offer. Any modification of original offer.

Question 44

Acceptance

Answer 44

When offeree accepts or agrees without change.

Question 45

Guardian

Answer 45

Assigned by court who are incompetent

Question 46

Option

Answer 46

Unilateral contract. Optionor i.e seller had to perform. Prescribed price in prescribed time.