Chapter 6: Contract Law

Question 1

Statue of frauds

Answer 1

The statute of frauds requires certain types of contracts to be in writing and signed.

A contract concerning real estate is subject to the statute of frauds.

Question 2

A contract is void if:

Answer 2

there is no consideration,
a party is mentally incompetent,
the objective is unlawful, or
there is no consent.

Question 3

A contract is voidable if:

Answer 3

a contract that fails to meet one of the basic requirements, leaving the other party in a position to withdraw from the contract.
It is still legally binding unless someone does something to undo it.

Question 4

A contract is unenforceable if:

Answer 4

A contract is unenforceable if its contents can’t be proved, if it’s voidable by the other party, or if the deadline set by the statute of limitations passes before a lawsuit is filed.

Question 5

Remedy for breach of contract: Specific Performance

Answer 5

In an order of specific performance, the court directs the breaching party to carry out the contract as promised.

When a damages award would be an adequate remedy, a court generally won’t order specific performance.

Question 6

What is a tender, and when is it required?

Answer 6

o be entitled to sue for breach of contract, the nonbreaching party must make a tender.

A tender is an unconditional offer to perform one’s own side of the bargain.

A tender is not required when there has been an anticipatory repudiation by the breaching party.

Question 7

Option Agreement

Answer 7

n option to purchase gives the optionee the right to buy the property for a specified price during the option period, without creating any obligation to do so.

If the optionee exercises the option before it expires, the optionor is required to convey the property on the agreed terms.

An option agreement must be in writing and may be recorded.