Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

UBC Real Estate Licensing Exam > Chapter 3.3: Law Of Contract > Flashcards

Chapter 3.3: Law Of Contract Flashcards

1
Q

An offer is what?

A

A promise made to specific group person or group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

2 exceptions to an offer

A

1) standing offer

2) invitation to treat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A Standing offer is what?

A

Open to many, can be accepted by anyone!

Such as a open listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

An invitation to treat is what

A

An invitation to treat is an invitation for others to make an offer. It is not an offer itself but an indication that one is open to negotiating a contract.

Examples include displaying goods for sale or advertising a product. Listing a house on the MLS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the acronym to know the 7 components to a contract!

A

COCA-COLA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the 7 essential elements needed in a contract

A

Acronym: COCA-COLA

Consideration
Offer
Capacity
Acceptance

Consent
(Legal) object
Legal intention
A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Essential element of a contract: offer

A

A promise made to specific group / person

2 exceptions: standing offer, invitation to treat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Essential element of a contract: acceptance

A

If the offer specifies how it should be made, the offeree should accept by that method

Example: email sent out, and email to reply

If the offer says nothing, the offeree should accept by the same method as the offer was given

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Proper acceptance can be either __________ or ___________

A

Oral or written!

Both work 100% fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The acceptance is considered effective when ______________, not when received

A

Communicated/sent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

For an acceptance to an offer, no postal acceptance rule (stamp) is allowed, meaning what!

A

The second it is dropped into the mailbox the offer is considered accepted, not when it is received

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Essential element of a contract: consideration

A

Something of value, such as money, a signature, or a family seal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Family seal does what?

A

A family seal serves as a traditional form of authentication and authority, often used to validate and signify approval on contracts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Consideration does not have to be _______

A

Money $€£¥

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does “Past consideration is no consideration” mean

A

Means that something given or promised in the past, before the current agreement, cannot be used as valid consideration for a new contract. Consideration must be current and part of the agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Consideration is not an _________ agreement

A

Option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Options agreement

A

An options agreement is a contract giving one party the right, but not the obligation, to buy or sell an asset at a specified price within a certain period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Essential element of a contract: (legal) object

A

Refers to the purpose or subject matter of the contract, which must be lawful and not against public policy. This means the contract’s terms and goals must comply with the law for it to be enforceable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Essential element of a contract: legal intention

A

Must have serious intention to create a contract

No social agreement such as a hand shake works fully

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Essential element of a contract: capacity

A

Capacity refers to the legal ability of parties to enter into a contract. This means they are of sound mind, not minors, and not under duress or undue influence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Essential element of a contract: consent

A
  • parties are in mutual agreement
  • genuine consent
  • have a clear understanding of the contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is duress?

A

Actual physical act

The party of the contract has been robbed of free will

Against your will (held hostage)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Release / expiry of a contract can happen in many ways, such as?

A
  • Time limit
  • Reasonable time has passed
  • Offer rejected
  • Counter offer
  • Revoke before acceptance
  • Insanity or death
  • Changes to offer by seller
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A counter offer does what?

A

Terminates the original offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

With duress, there is no need to

A

Actually harm the person,

This includes threats and imprisonment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Undue influence is what?

A

Any improper or wrongful constraint, manipulation, or persuasion whereby the will of a person is overpowered and he is induced to do or refrains from doing an act which he would not do or would do if left act freely

Example: Caregiver shows up in will
Example: must be vaccinated to work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Disclosure of defects, 2 types of defects

A

Patent

Latent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Latent defects

A
  • later!
  • cannot be discovered upon reasonable inspection
  • must be disclosed
  • the disclosure must be separate from any agreement of purchase and sale

Examples, mould in attic, ant infestation under garage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Patent defects

A
  • Present
  • should be discoverable upon reasonable inspection
  • doesn’t have to be disclosed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Caveat emptor

A

Buyer beware

31
Q

A Defect is what!

A

A defects impact on property’s value can be objectively determined through appraisals

32
Q

Stigma effect is what!

A

A stigma effect on property value depends on an individuals subjective considerations

Such as murder, haunted, crime, death

Stigma = subjective

33
Q

Mistakes

Where a mistake has occurred, the contract may be ________ or __________

A

Void or voidable

34
Q

Voidable contract

A

Has an option to be cancelled

Such as duress

35
Q

Void contract

A

Never existed in the first place

36
Q

3 types of mistakes

A

Common

Mutual

Unilateral

37
Q

Common mistake

A

Both make the mistake about the fundamental term of the contract

38
Q

Mutual mistake

A

Both parties make a mistake, but the mistake is different

Innocent

39
Q

Unilateral mistake

A

One party is mistaken, the other party is aware but does nothing

Deceit

40
Q

5 component that can lead to termination of a contract

A
  • frustration
  • performance
  • agreement
  • nonfulfillment of conditions
  • breach of contract
41
Q

Frustration

A

Happens after the contract is signed

Could be the house flooding, burning down, something to stop the contract dead in its tracks

42
Q

Termination of a contract: Performance

A

Party stops performing their duties / obligations

43
Q

Termination of a contract: Agreement

A

1 type of termination

Both parties agree to end the contact and stop

44
Q

Termination of contract: Nonfulfillment of conditions

A

1 type of contract termination

Allows for contract to cancel naturally

45
Q

Termination of a contract: Breach of contract

A

1 type of termination

When you go directly against outlined terms in contract

46
Q

Common mistakes and frustration, the order and specifics

A

June 4th - common mistake
June 5th - contract signed
June 6th - frustration
June 10th - completion date

Contract performed = closed

C comes before F

47
Q

Doctrine of privity

A

Only the parties to a contract have a right to sue or be sued under it

Aka- Kendra couldn’t sue on my behalf if I was in a contract

48
Q

With the doctrine of privity, what isn’t involved?

A

Land! Land isn’t involved

49
Q

2 exceptions to the doctrine of privity

A

1) assignment

2) interests in land (doesn’t apply to land transactions)

50
Q

__________________: A person can assign away benefits under a contract to a third-party, and the third-party can sue to enforce those benefits

A

Assignment

51
Q

With assignment, you cannot assign ____________

A

Liabilities

52
Q

Two types of assignment

A

1) statutory - based on law

2) equitable

53
Q

Statutory assignment legal requirements

A
  • in writing
  • for the whole amount (whole contract / debt)
  • given to promissor
54
Q

3 people in assignment

A

1) promissor
2) assignor
3) assignee (third party)

55
Q

Promissor

A
  • The person who owes money to the assigner (aka Kale with his telus contract)
  • consent is not needed from this person
  • Cannot assign the debt (liability)
56
Q

Assignor

A
  • The original party to the contract (aka telus, aka the people you haven’t paid)
  • can assign benefits under the contract
57
Q

Assignee (3rd party)

A
  • Receives the rights and obligations under the contract, but wasn’t an original party to the contract
  • can sue to enforce the benefits

Example: collection agency 

58
Q

Common law remedies to assignment

A

Damages- for breach of contract

The injured parties does not have a duty to mitigate damages (aka keep losses at a minimum)

59
Q

Equitable law remedies to assignment

A

•cannot be given if damages are awarded

  • specific performance
  • injunction
  • mandatory injunction
  • quantum meruit
60
Q

Equitable law remedy: specific performance

A

A remedy for a breach of contract or if the property is unique and there is no substitute

Cannot be awarded if damages are given

Example: castle like property, truly 1 of a kind 

61
Q

Equitable law remedy: injunction

A

It can stop from doing something (selling property to someone else)

62
Q

Equitable law remedy: mandatory injunction

A

Require to do something

63
Q

Equitable law remedy: quantum meruit

A

The law implies a promise to pay a reasonable sum

As much as is deserved

64
Q

Alex puts an advertisement in the local newspaper offering to sell his property for $1 million. This advertisement is known at law as

A

An invitation to treat

65
Q

Doug makes a written offer to ask. Which of the following will not release Doug’s offer

1) Doug discovers later that Ash is illiterate

2) ash fails to accept the offer before the expirery of the time limit specified on the offer
3) ash makes the counter offer
4) Doug revoke his offer to Ash via telephone

A

1) he is illiterate

66
Q

Revocation can be made prior to or after acceptance

A

 false

Only prior

67
Q

The method of revocation should be exactly the same as the method used in the offer

A

False, should be, but not mandatory/must

68
Q

Unless consideration is paid to keep an offer open for a specific time, revocation can be made at any time prior to acceptance

A

True!

69
Q

If an offer is made by telegraph and the acceptance is mailed when is the acceptance effective

A

When it is posted/mailed

70
Q

Frustration can only occur after a contract has been made

A

True, C comes before F

Common mistake before contract
Frustration after contract

71
Q

Frustration occurs where both parties to a contract have made a fundamental mistake about the contract, but each makes a different mistake

A

False, this describes a mutual mistake

72
Q

True or false… An assignment terminates the original contract between the assigner and the third-party

A

False… It cancels it between the assigner and the promiser

73
Q

True or false… A person can assign both the benefits and liabilities under a contract

A

False… Only the benefits, no liabilities

74
Q

True or false… BC‘s law and equity act prohibits assignment of contracts which creates an interest in land

A

False… It is difficult to do, but still allowed at 100%

UBC Real Estate Licensing Exam (24 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions