Chapter 6: Contracts Flashcards
What is Consideration?
Something of value given to make the promises of a contract enforcable. Consideration is also something of value given by the grantee for a deed
What is a Contract?
Agreement between two or more persons consisting of a promise or mutual promises that the law will enforce or the perforance of which the law recognizes as a duty.
What is a Counteroffer?
A response to an offer by the offeree stating terms of acceptance different from the offer. The counteroffer terminates the original offer and becomes an offer of its own to be accepted or rejected.
What is Express Authority?
Authority that has been clearly given by the principal to the agent.
What is a Fiduciary?
A person who holds a special relationship of confidence and trust to a principal and owes to the principal a duty to exercise all of the affairs of the principal in good faith and with loyalty.
What is Implied Authority?
Authority of an agent, implied by law, to do those things necessary and proper in order to carry out the duties of the agency.
What are Liquidated Damages?
An amount of money agreed on by the parties to a contract to be the damages in the event of a default of the contract.
What is a Listing Agreement?
Agreement entered into between an owner and a real estate broker retaining the real estate broker to assist the owner in selling real property.
What is Power of Attorney?
A written document authorizing another person to act as one’s agent.
What is Rescission?
A remedy for default under a real estate contract wherein the contract is terminated and the defaulting party must reimburse the injured party for expenses incurred in connection with the contract.
What is Specific Performance?
A remedy for breach of real estate contract that requires a defaulting party to perform the promises made in the contract.
