Contract Law Flashcards
Define bilateral contract:
Promise for a promise
A unilateral contract is a:
Promise for a performance
4 essential elements of any contract:
1- Mutual Agreement
2- Consideration
3- Capacity/competency
4- Legal purpose
According to the Statute of Frauds (which has nothing to do with defining fraud), which of the following contracts do NOT have to be in writing to be enforceable:
a. Purchase of a primary residence for $87,000
b. A lease agreement for 2 years
c. Purchase of a used motorcycle for $895
d. An agreement to hire a gardener for six-months
D
T/F If the agent and the seller know the roof leaks, and the buyer never asks about it, they do not have to reveal that information to the buyer.
False
Partial Performance
In a contract dispute; all parties agree to just leave things as they are.
. In a contract dispute situation, if all parties agree to a “contract to end the contract” (everyone returns to their original position) this is an example of:
Rescission
Define Specific Performance
In a contract dispute situation, if one party sues asking the court to make the other do as he/she agreed
A money adjustment for actual losses is called _______.
damages
“Subject to” clauses in CONTRACTS are also known as:
Contingency
“Subject to” clauses in DEEDS are also known as:
Habendum
The seller changed the date of closing before signing and returning the offer to the agent. This would constitute an acceptance.
False
To sign a contract is to __________ it. The person who signs is called a(n) ________.
Execute, Signatory
In an executed contract, all its terms have been:
Performed
A contract which is still in process, and is not in default is:
Executory
A void contract lacks one or more of the essential elements. It is binding on ____________ of the parties.
None
T/F A valid contract contains all essential elements. It is binding on all parties to the contract.
True
You know the basement leaks, but say “Oh, no the basement doesn’t leak at all.” This is an example of:
Positive fraud
You did not purposely deceive, but with reasonable care the problem could have been avoided. This is an example of:
Constructive Fraud
When they know the basement leaks, but the agent and seller say nothing & the buyer doesn’t ask about the basement. This is an example of:
Negative Fraud
An offer can be withdrawn at any time up to ____________. There is no acceptance until the acceptance has been ____________ to the offeror.
Acceptance, Communicated
A clause providing for a predetermined money settlement for anticipated defaults (such as the earnest money) is called a __________ damages clause
Liquidated
All contracts are assignable, without the approval of the other party, except for those involving _________ __________ (which includes Agency), or those that specifically prohibit it (such as a “Due on Sale” clause in a loan).
Personal Services
A contract exists between Abel & Baker. Abel substitutes Chan in his place with the approval of Baker, and Abel is released from all liability. This is called ________.
Novation
When all dates are firm and must be met, the contract has a time is of the essence clause. Violation of deadlines creates a ________________________ contract.
Voidable
Which of the following is a bilateral contract?
a. Option
b. Listing
c. REPC (Real Estate Purchase Contract)
C. REPC
T/F. An agent brought the sellers an offer at exactly the price and terms specified
in the listing agreement. The sellers don’t want to sell. They still owe a commission.
True
T/F. The Real Estate Commission sets the legal rate of commissions for Utah
False
A listing where the seller wants a specific amount of money, and the broker keeps everything over that amount as commission is called a ___ _______ and is _______ in Utah.
net listing, Illegal
The concept that says the agent who first took the buyer to the property earns the commission is called:
To and through
The idea that says the agent who sets in motion an uninterrupted chain of events leading to the closing earns the commission is:
Procuring Cause
T/F An Option is a contract giving a potential buyer the right to buy or not to buy a property. It must contain a specific time period, the purchase price, the terms of the sale, and the consideration. The option consideration must be non-refundable.
True
An option is considered a _______ contract.
Unilateral
A listing agreement is a contract between the:
Broker and the Seller
A REPC is a contract between the:
Buyer and the Seller
When the seller lists with several brokerages, but will pay commission only to the one who finds a buyer first, that is a(n) _________ listing.
Open
. A listing where there is only one listing contract with one brokerage, but if the sellers find their own buyer they do not owe a commission, is:
Exclusive Agency Listing
When the seller owes a commission regardless of who finds the buyer, that listing is a(n):
Exclusive Right to Sell
The seller can retain the right to sell to specific buyer(s) without paying a commission by putting _________ in the listing agreement.
Exclusions
If the sellers did not want to take the property off the market, but were willing to give the person asking for the option the first chance at the property, they might use a ____ __ ____ _______.
Right of First Refusal
