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NC Real Estate > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

anything of value offered an an inducement to contract (money, action, or forebearance)

A

Consideration

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2
Q

parties of the contract have expressed all the terms and conditions as agreed upon between them. Can be written or oral

A

express contract

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3
Q

a contract that is implied from the conduct and actions of the parties

A

implied contract

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4
Q

a contract based on mutual exchange of promises or acts between two parties (both make promises)

A

bilateral contract

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5
Q

one party makes a promise to the other and the second party returns an action in response to the promise, but not legally bound

A

unilateral contract

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6
Q

a contract that has been fully performed by the parties

A

executed contract

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7
Q

contracts that have not been fully performed (pending)

A

executory contract

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8
Q

a binding and enforceable contract

A

Valid contract

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9
Q

a contract that results from failure to meet some legal requirement

A

Voidable contract

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10
Q

a contract that is absolutely unenforceable and has no legal force or effect (issues with the contract itself, not the parties)

A

Void contract

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11
Q

What are the essential elements of a Valid Contract?

A
  1. Mutual agreement of parties
  2. Consideration (exchange something of value)
  3. Mentally Competent Parties
  4. Legal Promises (promise to perform a legal act)
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12
Q

the person making an offer

A

Offeror

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13
Q

The person the offer is being made to

A

Offeree

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14
Q

when an offer is vague and an acceptance will not result in the creation of a calid contract

A

illusory offer

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15
Q

a rejection coupled with a new offer

A

counteroffer

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16
Q

In what ways can an offer be terminated?

A
  1. By rejection or counteroffer
  2. Within a prescribed time (specified time limit, or a “reasonable” period of time after the offer is made & before acceptance)
  3. By revocation prior to acceptance
  4. Be death or insanity prior to acceptance
  5. Acceptance by Offeree
  6. By expiration of a Power of Attorney
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17
Q

anything of value

A

consideration

18
Q

money that the buyer deposits with the offer to purchase to show that they buyer is earnest, or sincere, in the intent to purchase the property

A

earnest money

19
Q

legally competent

A

contractual capacity

20
Q

contracts must have legal purpose

A

legal objective

21
Q

requires all real estate documents to be in writing

A

Statute of Frauds

22
Q

states that a written agreement takes priority over a verbal agreement

A

Parol Evidence Rule

23
Q

physical threat to someone

A

duress

24
Q

emotional threat to someone

A

undue influence

25
Q

seller in an auction reserves the right to reject all incoming bids

A

With Reserve

26
Q

the seller holds no reservations and has indicated her acceptance of whatever bids are obtained

A

Without Reserve/Absolute

27
Q

Who can accept an offer for a seller: A broker or an auctioneer?

A

An auctioneer

28
Q

allows contracts to be created by electronic means and recognizes that an electronic signature is binding

A

Uniform Electronic Transaction Act (UETA)

29
Q

What are the four ways a CONTRACT can be terminated?

A
  1. Agreement of parties
  2. Full performance
  3. Impossibility of performance
  4. Operation of law
30
Q

each party in a transaction releases the other from performance

A

release

31
Q

settlement agreement between the parties, often in the form of some compromise

A

accord and satisfaction

32
Q

replacing a prior contract with a new contract

A

novation

33
Q

when all terms of the contract have been fully completed by all parties

A

full performance

34
Q

describes the manner in which the rights or liabilities of parties may be changed by the application of law without the act or cooperation of the parties affected

A

operation of law

35
Q

failure, without legal excuse, to perform any promise that form the whole or part of a contract

A

breach of contract

36
Q

the transfer of legal rights and obligations by one party to another

A

assignment

37
Q

a term that means contractual terms and dates must be strictly adhered to

A

time is of the essence

38
Q

What are five ways a contract can be remedied?

A
  1. Compensation
  2. Consequential
  3. Recission
  4. Liquidated Damages
  5. Specific Performance
39
Q

compensation for any financial loss caused by the breach as may be awarded by the court

A

compensatory damages

40
Q

amount of money agreed upon in the contract for damages

A

liquidated damages

41
Q

to make a party do what they said they would do, specifically a seller in breach

A

specific performance

42
Q
A

NC Real Estate (6 decks)

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