Contracts

Question 1

requires that certain types of contracts, such as for a property ownership transfer, be in writing to be legally enforceable and to prevent injury from fraudulent conduct.

Answer 1

statute of frauds

Question 2

requirements for a valid contract,

Answer 2

Offer and acceptance
Consideration
Legally competent parties
Legal purpose
Made voluntarily

Question 3

occurs when the parties enter into an agreement voluntarily with full understanding of contract terms.

Answer 3

Offer and acceptance

Question 4

something of legal value offered by one party and accepted by another, e.g., the buyer’s promise to pay the full purchase price, and the seller’s promise to transfer marketable title through delivery of a deed.

Answer 4

Consideration

Question 5

those who have the legal and mental capacity to enter into a contract.

Answer 5

Legally competent parties

Question 6

means that the contract results in a legal outcome.

Answer 6

Legal purpose

Question 7

the parties entered into the agreement voluntarily. Mistakes, misrepresentation, fraud, duress, or undue influence create a situation in which the consent is not real.

Answer 7

voluntary contract

Question 8

refers to the concept that if a court deems a term in the contract to be unenforceable, the remainder of the contract remains enforceable.

Answer 8

Severability

Question 9

A contract that appears valid, but one or both parties have a legal right to disaffirm it.

Answer 9

voidable contract

Question 10

This contract isn’t ane because it lacks one or more of the requirements for a valid contract. It has no legal force or effect; it’s unenforceable.

Answer 10

void contract

Question 11

A contract which all parties have met the terms.

Answer 11

executed contract

Question 12

A contract remains in this phase until all of the promises in the contract have been completed.

Answer 12

executory

Question 13

describes how contract-related notice may be made and when notice is considered to have been received.

For example, a purchase or listing contract may permit contract parties to select whether notices may be delivered electronically.

Answer 13

notices clause

Question 14

occurs when one party fails to meet contract obligations.

Answer 14

Breach of contract

Question 15

When a breach occurs, the innocent party may unilaterally terminate the contract.

Answer 15

unilateral rescission

Question 16

when one party meets some, but not all, of the terms of the contract.

Answer 16

Partial performance

Question 17

This is a means of seeking monetary compensation to make up for any harm caused.

Answer 17

damages

Question 18

seeks to force a party to make good on the promises made in some way.

Answer 18

specific performance suit

Question 19

limits buyer damages to a return of the earnest money if the seller breaches the contract.

Answer 19

liquidated damages

Question 20

the parties have met all contract terms and are discharged from their contractual obligations.

Answer 20

Contract discharge (aka performance, execution)

Question 21

generally means that one of the parties ends the contract before it’s fully performed.

Answer 21

Contract termination

Question 22

When one party to a contract agrees in writing that the other party is no longer held to the provisions of the agreement

Answer 22

release.

Question 23

to transfer contractual rights or duties to a new party.

Answer 23

Assignment

Question 24

occurs when one contract is substituted for another.

Answer 24

Novation

Question 25

This contract happens when both parties have obligations.

Answer 25

bilateral contract

Question 26

This contract happens when only one party makes a promise.

Answer 26

unilateral contract

Question 27

an addition to an existing document, such as an offer to purchase

Answer 27

addendum

Question 28

a change to an existing contract between parties.

Answer 28

amendment