Contract Law Flashcards
Contract
Illegally enforceable agreement between two parties, who agree to perform or refrain from performing certain acts 
Express contract
Contract created by words, oral or written of the contracting parties 
Implied contracts
These contracts are created by the actions of the parties 
Execution
This refers to the placing of the signatures, thus putting the deed into affect a person who signed the document as a signatory to the document 
Executory
One the terms of an executory contract or not yet fully performed. The contract is in process of being carried out in the contract is not in default.
Well, yeah
Executed
Terms of this have been fully performed. Can be executed by one party and executory by the other party
Bilateral
The exchange of a promise for a promise. Repc or promisory note
Unilateral
Exchange for promise for performance, example would be a reward poster, employment agreement between a principal broker, and a sales agent, or an associate broker. For the option contract for purchase of real estate, until it is exercised.
Mutual agreement/assent
Meeting of the minds
Essential elements of a contract
Mutual consent, consideration, capacity, legal purpose, and for real estate, it must be in writing
Consideration
Each party must incur legal detriment and or receive benefits.
Valuable and good
Valuable consideration
includes money, real or personal property services or promises $10
Good consideration
Love and friendship
DOES NOT CONSTITUTE enough for contract
Capacity
The premise that each party is able to understand the terms of the contract, and make rational decisions to whether or not entering into it is desirable
Legal purpose
I’ll contracts must be in agreement with public policy or law
Void
We have one or more of the essential elements are missing for both parties.
Voidable
One element is missing for one party. Like a minor entering into a contract
Statute of frauds
Contracts for real estate
Lease agreements for longer than a year
More than $500
In writing
Parole evidence
Testimony that is in contrast to the written agreement is not admissible
Lis pendens
Filing of a public notice that legal action is pending on a particular property, the property can be sold during this time, but is subject to court approval and action public notice that legal action is pending on a particular property, the property can be sold during this time, but is subject to court approval and action 
Judgement
Formal decision of a court in a legal action or suit.
Attachment
Seizing real or personal property of a defendant in a law suit levied.
Holding it in the custody of the court.
Writ of execution
Court order directing an officer of the court to sell a property of a defendant to satisfy judgment
Abrogation
The final documents executed at the closing abrogate, or nullify the real estate purchase contract except the provisions, that the parties agree to survive closing 
Positive fraud (overt)
Overt or deliberate misrepresentation about facts
Negative fraud
Covert or hiding omitted information
Constructive fraud
No evil intent to misrepresent not intentional
Puffing
Gross exaggeration of opinion
“My house is the best”
Rescission
Contract to end a contract
Annulment return to original position
Suit for damages
The injured party is ordered money adjustments, because contracts contain results of the parties are expecting to occur
Suit for performance
The guilty party is ordered by the court to complete as agreed
Liquidated damages
In anticipation of a particular default.
Bounce check
Late penalty
Earnest money
Mediation
Other options open to the parties in a dispute.
Assignment
Includes unless contracts prohibits
Novation
Substitute one obligar in place of another. Qualified assumption
Tender
To make or present an offer
