Chapter 19 Review: Write the Offer and Contracts Flashcards
An express contract may be written or _____. I order lunch at a diner; there is an express contract that I will pay $6.95 for my meal when I am finished eating
oral
An _____ contract is created through the actions of the parties. I borrowed my neighbor’s lawn mower, a lawn implement that I know my neighbor charges other people on the street to use. When I return his lawn mower, he expects that I will pay him.
implied
If a person dies testate, he had a will; the _______ is responsible for settling the estate
executor
If a person dies intestate, he did not have a will; the court appoints an _________ to settle the estate
administrator
To be _________, a contract must have a legal purpose
enforceable
An offer may be terminated by the following:
Revocation at any time before it is accepted Counteroffer Rejection Time Death of the offeror/offeree Destruction of the property Operation of law Material change of circumstances
An acceptance of an offer means that the offeree accepts _______ _____ __ ___ _____. There is not one thing that the parties do not agree on
every term of the offer
An exchange of promises is the __________ in a contract for real estate
consideration
The Statute of Frauds required that in order to be enforceable in court, real estate contracts must be
written
The essential elements of a real estate sales contract are:
Competent parties Legality of purpose Offer Acceptance Consideration Written contracts Communication
Both parties exchange promises in a ______ contract; a Purchase and Sale Agreement is an example
bilateral
One part makes a promise and the other party forms the contract by completing the action in a _________ contract; offering a reward if someone finds your lost pet is an example. Another example is a listing agreement between a consumer and a real estate brokerage agency
unilateral
An ________ contract is one that has not yet been completed; an example is the Purchase and Sale Agreement between its effective date and the closing
executory
An _________ contract is one for which all parties have performed all duties; a Purchase and Sale Agreement the day after a successful closing is an example
executed
A _____ contract contains all the essential elements and is enforceable in court
valid
A _____ contract lacks one or more of the essential elements; for example, a contract for James to sell cocaine to Duncan is a void contact as it is not for a legal purpose
void
A ________ contract offers one or both of the parties the option to rescind or disaffirm the contract; for example, one of the parties was 16 years old when she made a contract to buy a bicycle. The parties can go through with the sale if they wish. Or either party can disaffirm the sale
voidable
An _______ contract may be brought to court in a lawsuit
enforceable
An __________ contract is one for which neither party can sue to enforce in court. An example is an oral agreement to purchase real estate
unenforceable
Most state laws allow for a licensee to ___________ on a prepared contract form; licensees need to avoid the unauthorized practice of law
fill in blanks
In a real estate contract, liquidated damages are usually limited to the
earnest money deposit
With an ______ contract, the seller agrees to take the property off the market for a period of time
option
A Right of First Refusal is a contract to buy property that is _________________. If the owner ever puts the property on the market, the holder of the right has the first opportunity to buy the property
not currently for sale
Three ways that a sales contract can be discharged by operation of law are:
Forfeiture
Condemnation
Bankruptcy
When a party rescinds the contract, the parties return to the ____________ they held before entering into the contract. For example, the buyer didn’t like the results of the building inspection so, according to the terms of her contract with the seller, the buyer got her earnest money back and went on her merry way
same legal positions
