Chapter 7 Flashcards
Contract
(aka valid contract); an enforceable agreement between competent parties, supported by consideration for a lawful purpose.
Agreement
an offer and an acceptance
Offer
a communication by the offeror containing the terms and conditions under which he or she is willing to enter into a contract
Revoke
the offeror’s withdrawal of an offer
Reject
the offeror’s withdrawal of an offer
Acceptance
agreement by the offeree to accept the specific terms of the ofer
Communicate
the required manner in which the offer must be accepted
Consideration
in contract law, anything of value given in exchange for a promise
voidable contracts
contracts in which either or both of the parties lack contractual capacity
Capacity
the legal ability to enter into a contract, including being legal of age, called the age of majority
Age of Majority
the legal age for entering into a contract
Listing Agreement / Listing Contract
Contract that describes the rights and obligations of the seller and the real estate broker
Exclusive Agency
the seller gives the broker the exclusive right to market the property and receive commission upon the sale of the property
Loyalty
agent’s duty to act solely in the best interest of the principle
Obedience
agent’s duty follow the lawful requests and instructions of the principal
Disclosure
agent’s duty follow to communicate all information that affects the principal
Confidentiality
agent’s duty to keep information about the principal from others
Commingle
combining the client’s funds with those of the agent
accounting
a report of the funds of the principal
Dual Agency
when an agency represents both parties in a transaction
