Chapter 13 Vocabulary Flashcards
Void contract:
A. An unenforceable contract that lacks legal purpose or essential requirements.
B. A legal process used when a borrower defaults on a debt.
C. An agency agreement giving the listing firm the exclusive right to market the seller’s property.
D. The method by which the court gains custody of a deed to assure that the collateral will not be sold without satisfaction of a court-ordered judgment.
A. An unenforceable contract that lacks legal purpose or essential requirements.
Valid contract:
A. A contract that contains all of the necessary elements and is enforceable in a court of law.
B. A contract that can be voided by an injured party.
C. A one-sided agreement where one party is 16 years old.
D. A contract whereby neither party can sue the other for performance.
A. A contract that contains all of the necessary elements and is enforceable in a court of law.
Unenforceable contract:
A. A one-sided agreement where one party makes a promise to
another and is bound by the promise.
B. A contract that can be voided by an injured party.
C. A court order instructing the officer of the court to carry out the decision of the court.
D. A contract whereby neither party can sue the other for performance.
D. A contract whereby neither party can sue the other for performance. However, an unenforceable contract may be valid between the parties by their mutual agreement.
Unilateral contract:
A. A one-sided agreement where one party makes a promise to another and is bound by the promise.
B. Selling one product only if the buyer agrees to purchase another product.
C. A contract whereby neither party can sue the other for performance.
D. The method by which the court gains custody of a deed to assure that the collateral will not be sold without satisfaction of a court-ordered judgment.
A. A one-sided agreement where one party makes a promise to another and is bound by the promise. The second party is not bound.
Approved form:
A. Valuable additions made to property that cost labor and capital and are intended to enhance the value of the property.
B. A contractual or conveyance form that is prepared and approved by the Real Estate Examining Board (REEB).
C. An agreement between a buyer and a seller for the sale and purchase of a property.
D. A written employment agreement that creates an agency relationship between a firm and a buyer.
B. A contractual or conveyance form that is prepared and approved by the Real Estate Examining Board (REEB).
Consideration:
A. A bargained-for thing from a promisor to a promisee that is necessary for a valid contract.
B. A judicial or administrative proceeding to exercise the power of eminent domain.
C. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
D. An agreement between a buyer and a seller for the sale and purchase of a property.
A. A bargained-for thing from a promisor to a promisee that is necessary for a valid contract. It may take the form of good consideration, such as a promise, or it may be valuable consideration, such as money or other material possession.
Breach:
A. A residential financing arrangement in which the buyer of a new home borrows money and gives a second mortgage on the buyer’s unsold home to fund the acquisition of a new home.
B. Chronological record of a property’s ownership.
C. A legal document used to transfer ownership of personal property.
D. A failure to perform as promised in a contract.
D. A failure to perform as promised in a contract.
Parole evidence rule:
A. Formal judicial proceedings to prove or confirm the validity of a will, to collect the assets of a decedent’s estate, to pay debts and taxes, and to determine the persons to whom the remainder of the estate is to pass.
B. Prevents the admission into court evidence of any oral negotiations or agreements that vary or contradict the terms of the written contract.
C. A court process that divides co-tenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership.
D. A charge imposed against a borrower for paying a loan off early.
B. Prevents the admission into court evidence of any oral negotiations or agreements that vary or contradict the terms of the written contract.
Contingency:
A. A legally enforceable promise or set of promises that must be performed, and for which, if a breach occurs, the law provides a remedy.
B. Any component to a property is worth only what it adds to the property’s value regardless of the cost of the improvement.
C. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
D. A bargained-for thing from a promisor to a promisee that is necessary for a valid contract.
C. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
Valuable consideration:
A. Anything exchanged by contracting parties that has monetary value.
B. Anything exchanged by contracting parties that does not have monetary value.
C. A prospective buyer of property who is legally capable and financially able to complete the transaction.
D. An unconditional promise of one person to pay a certain sum of money to another at a future specified time.
A. Anything exchanged by contracting parties that has monetary value.
Good consideration:
A. Anything exchanged by contracting parties that does not have monetary value.
B. Anything exchanged by the contracting parties that has monetary value.
C. A promise contained in a deed by which one of the parties agrees or pledges to the other that something will be done or shall not be done.
D. The maximum value of a property that is realized when the other properties in the neighborhood are similar.
A. Anything exchanged by contracting parties that does not have monetary value.
Meeting of the minds:
A. A written instrument giving a person the authority to act on behalf of another.
B. A relationship between a firm and two or more of the firm’s clients where the clients are parties in the same transaction.
C. Any statement of fact by one person to another, either by words or actions, which is not in accordance with the facts.
D. Mutual assent or agreement between the parties to a contract regarding the substance of the contract.
D. Mutual assent or agreement between the parties to a contract regarding the substance of the contract. There can be no contract unless there is a meeting of the minds.
Capacity:
A. All real property in a condominium development that is not described as a unit.
B. Expenses of a sale that a buyer must pay in addition to the property’s purchase price or that are deducted from a seller’s proceeds.
C. A party’s ability to contract.
D. A claim or encumbrance that would affect or burden an owner’s title to real estate.
C. A party’s ability to contract.
Voidable contract:
A. The right of a government to place a charge on real estate to raise funds to meet the public need.
B. A contract whereby neither party can sue the other for performance.
C. A remedy for breach of contract whereby a party sues the breaching party for cash damages.
D. A contract that can be voided by an injured party.
D. A contract that can be voided by an injured party.
Legal purpose:
A. A comprehensive plan used to guide development of an area.
B. A method of foreclosure where a mortgagee files suit to have the property sold by court order in an advertised public sale.
C. Must be the basis for the contract.
D. The power of a government to preserve order and protect the public health and general welfare.
C. Must be the basis for the contract.
Contract:
A. A specific, involuntary lien placed against real property for securing a debt.
B. Land uses allowed under certain conditions that a government has decided are not well suited to all locations within the zoning district.
C. A legally enforceable promise or set of promises that must be performed, and for which, if a breach occurs, the law provides a remedy.
D. The right to use a property within the boundaries of the law.
C. A legally enforceable promise or set of promises that must be performed, and for which, if a breach occurs, the law provides a remedy.
