Chapter 9 Real estate contract Flashcards
Contract
A promise or a set of promises which law will enforce
What are the essential elements of a contract
MutualAgreement
Competent parties
Consideration
Legal purpose
Mutual agreement
Got to be of their own free will
Incompetent parties
Not of legal age or lack of mental capacity
Void contract
A document which lacks one of the legal elements and is therefore unenforceable
Voidable contract
A document which one party is able to void
ExpressContract
Implied contract
Intentions Stated
Inferred from conduct
Bilateral or unilateral
Bilateral- To promises both parties bound
Unilateral- Only one party bound
Executory an executed
Executory is task remaining to be done
Executed all task performed
Revocation of offer
Offer can be with drawled anytime prior to acceptance
Statute of fraud
Requires all real estate documents to be in Riding
Parole evidence rule
Written takes priority over verbal
Has to be in writing
Dream oils
Specific performance
The court order to force a party to perform the terms of the contract
Handling of trust money
Due diligence fee to the seller re-business day rule
Earnest money provisional broker deliver to the big immediately and broker in charge deposits to the trust account three banking day rule
If check may hold for three days if cash must deposit immediately
