chapter 3 : contract Flashcards
a contract
is a voluntary agreement or promise between legally competent parties, supported by legal consideration to perform or refrain from performing some legal act 
voluntary
no one may be forced into a contract 
an agreement or a promise
A contract is essentially a legal enforceable promise 
legally competent parties 
The parties must be viewed by the law as capable of making a legally binding
Promise 
legal consideration 
A contract must be supported by something of value that induces a party to enter the contract, and that something must be legally sufficient to support a contract 
legal act 
No one may legally to do something illegal
Express contract 
exist when the party states, the terms and children, intentions in words, express contract may be oral or written 
bilateral 
in the bilateral contract wolves parties, promise to do something one promises given in exchange for another 
unilateral 
it’s a one-sided agreement one party makes a promise to induce a second party to do something if you wash dishes I’ll give you five dollars. The second part is not legally obligated to act. However, if they do wash dishes, you have to pay the five dollars. 
A contract may be classified as either 
executed or executory 
executed contract 
is a contract is one in which all parties have fulfilled their promises 
executory contract 
exist when one or both party still have an act to perform 
what are the basic essential elements of a contract? There are six. 
offer, acceptance, consideration, awareness, legality, capacity 
an offer
Is a promise made by one party, requesting something in exchange for that promise it must be excepted by the other, and offered by one party 
Mutual assent
Meeting of the minds or complete agreement about the purpose in terms of the contract 
Who makes the offer?
offeror
Who accepts the offer?
Offeree 
proposing any deviation from the terms of the offer constitutes into a what 
A rejection of the original offer, and create a new offer 
any change in the last offer may result in a counter offer until
Either party reached an agreement or one party walks away 
after the offer has been accepted, it can be what 
withdrawn any time before the other party has been notified of the acceptance 
acceptance
an offer is not considered excepted into the person making the offer has been notified of the parties acceptance
consideration 
something of legal value offered by a party, and accepted by another, as to persuade the performance, or refrain from performing some act 
adequate consideration ranges from as little as
Promise of love and affection, good consideration to 
a substantial sum of money, valuable consideration
awareness

A contract must be entered into as the free, involuntary act of each party
there should be no mistakes, misrepresentation, fraud, undue, influence, or duress 
 legality 
A contract must be for a legal purpose, a contract for an illegal purpose or an act against public policies is not a valid contract 
capacity 
all parties to the contract must have legal capacity. They must have a mental capacity to understand the nature or consequences of their actions. 
valid contract 
when it meets all the essential elements that make it legally sufficient or enforceable 
void contract
A contract is void when he has no legal force or affect, because it lacks some or all of the essential elements of a contract 
A contract is voidable when 
under duress intoxication, result of fraud mistake, or misrepresentation
A contract with a minor
I contract made by a person who has been adjudicated insane

leases or rental agreement, signed by minors, generally are enforceable because 
short term housing is usually considered a necessity 
valid
has all legal elements and is fully enforceable in court and between the parties
Void
lacks one or all legal elements

voidable
has all the legal elements, but may be rescinded or disaffirmed 
unenforceable
Has all legal elements and is not enforceable in court only between the parties 
A party who fails to meet the deadline specified in the contract is 
liable for breach of contract 
courts sometimes have declared contracts to be invalid, because 
they do not contain a time or date for
Performance 
in Illinois, a deed or contract executed on Sunday or legal holiday is

valid and enforceable 
when the last day on which a deed or contract must be executed, is a holiday or Sunday…
The deed or contract may be executed on the next regular business day 
novation 
substitution of contracts the parties intent must be to discharge the old obligation 
assignment 
substitutions of parties
breach of contract 
is a violation of any of the terms or conditions of a contract without legal excuse 
other reasons for termination 
partial performance of the terms,
substantial performance on the contract, but does not complete all the details as the contract requires
impossibility of performance in which an act required by the contract, can not be legally accomplished
mutual agreement of the parties to cancel
operations of law, such as voiding contract by minor results of fraud, or do the expiration of the limitations of the contract 
rescission
One party may cancel, or terminate the contract, as if you had never been made

A licensing may not request or encourage a party to sign a contract or document that contains 
blank spaces to be filled in later, or to make changes to a signed contract without the riding consent of the parties 
property management (listing) in renter/tenant (buyer) agency agreement are
employment contracts 
A property management agreement establishes 
The rights and obligations of the sponsoring broker as agent and the landlord as principal 
