Chapter 13 - Contracts Flashcards
A ______ contract is one in which all the terms and covenants of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing.
An express contract
A _______ is an unstated or unintentional agreement that may be considered to exist when the actions of any of the parties suggest the existence of an agreement.
An implied contract
A _______ contract is one that has been fully performed and fulfilled: neither party bears any further obligation.
An executed contract
A _______contract is one in which performance is yet to be completed.
An executory contract
________ can be something of tangible value, such as money or something a party promises to do or not do. For example, a home builder may promise to build a house for a party as consideration for receiving money from the home buyer.
Valuable consideration
The ________ requires that certain contracts must be in writing to be enforceable.
Statute of Frauds
The _________ restricts the time period for which an injured party in a contract has the right to bring a lawsuit against the other party. In New York, the time limit for bringing a legal action involving a real estate contract is __ years.
Statute of Limitations, six
______ cancels the contract and returns the parties to their pre-contract condition, including the refunding of any monies already transferred.
Rescission
_______ requires the breaching party to give up something, according to the terms of the contract. For example, a buyer who defaults on a sales contract may have to give up the earnest money deposit.
Forfeiture
Sometimes a contract does not accurately reflect the intentions of the parties because of some mechanical or clerical error in the document. When this happens, a legal action called a _______ is necessary to correct or modify the contract.
reformation
The following are examples of….?
- Competent parties
- Mutual agreement
- Lawful objective
- Consideration
- In writing
The five criteria of a valid contract
A ________ is an agreement whereby the buyers agree to purchase a property and the sellers agree to transfer title to the property.
sales contract
A _______ is an agreement whereby the buyers put down earnest money as evidence of their good faith and intention to complete the transaction. This agreement is used to bind the parties until they can prepare a more formal sales contract.
binder
