Chpt. 12 Flashcards
A contract in which the parties state their intentions in words
Express contract
A contract established by the acts and conduct of the parties
Implied contract
A contract in which both parties promise to perform some act
Bilateral contract
An agreement having one promise
Unilateral contract
A contract that has been completely performed
Executed contract
The status of a real estate sales contract prior to closing
Executory contract
The person who accepts the offer in a contract
Offeree
Complete agreement about the purpose and terms of a contract
Mutual assent
Something of legal value offered by one party and accepted by another as an inducement to act or refrain from acting
Consideration
A contract that is without legal force or effect because it lacks one or more essential elements
Void
The transfer of rights or duties under a contract
Assignation
The substitution of a new contract to replace an earlier one
Novation
A contract established by the acts and conduct of the parties
Counteroffer
A violation of any of the terms or conditions of a contract without legal excuse
Breach
A deposit customarily made by a prospective purchaser when making an offer
Earnest money
The interest held by a buyer prior to delivery and acceptance of the deed
Equitable title
An amount of money that the parties agree will be the complete compensation available in the event of a breach
Liquidated damages
Additional conditions that must be satisfied before a property sales contract is fully enforceable
Contingencies
Parties must be of legal age and have enough mental capacity to understand the consequences of their actions in the contract
Legal capacity
A voluntary, legally enforceable promise between legally competent parties to perform ( or refrain from performing) some legal act
Contract
