contracts Flashcards
What are contracts?
Legally binding agreements between two or more parties agreeing to do or not do something
two or more parties= natural/legal persons
Offer and Acceptance
Shown by signatures or action electronic signatures are binding..
Real estate contracts must be in writings per Statute of Frauds..
What kinds of considerations are there
- Valuable consideration $$$
- Good consideration (no monetary value).
What is Realty of Consent and Competence?
Freedom from:
-Misrepresentation - Fraud - Duress - Undue Influence -
Parties must be:
-Sober - Of Sound Mind - Of Legal Age
What is voidable?
Able to move forward, but could go to a judge and void contract.
What is an unenforceable contract?
Cant be enforced if the court deems it impossible! unjust..
ex: verbal contract
What is Doctrine of Laches?
- Can be used to render a contract unenforceable
- Lose your rights if you fail to assert them within a reasonable time frame…
What is Statute of Limitations?
- Hard legal limit to when you can assert you can bring a claim to court
- Can be used to render a contract unenforceable after that time limit has passed
ex: MA certain contracts= 2 yrs to sue someone under breach of contract
Unilateral
One party making promises to another
Bilateral
Two parties making promises to each other
Ex: Fixed term lease Purchase & Sale agreement
Executed
Completed and finished contracts
Executory
Contracts that have been agreed to
(Not yet completed)
What is a Breach of Contract?
One of the parties of a contract dont do what they agreed to do.
“Performance Issues
Doctrine of Privity (Privity of Contract)
Right to sue under a contract.
What happens during breach of contract?
cancellation of contract//Specific performance// compensation for damages//pre agreed upon $$ in event of breach//loss of deposit
Common clauses in contract?
Ironclad Merger Clauses..Severability Clause.. Contingency Clause
Listing Contract
Broker employment contracts.. used to hire real estate agent to sell home//negotiable//
Entry Only Listing (Data Entry Only)
Seller pays fee for MLS listing// Broker offers limited services to Seller// Seller negotiates own sale//
Open Listing
- Seller hires multiple brokers
- Can be verbal/written
- No commission earned if seller finds buyer w/ no help
Exclusive Listing
Agency
- Seller hires 1 broker
- Must be in writing with expiration date
- No commission earned if seller finds buyer w/ no help
Exclusive Right to Sell
- Seller hires 1 broker
- Must be in writing with expiration date
- Broker earns commission and may co-broke
- seller must pay commission even if they find buyer
What is the purpose of an Offer?
Legally binding contract to enter a P&S
offer leads to the signing of a P&S Contract
Verbal offers or acceptance are non binding
Offers may be terminated by?
- At end of time limit stated in offer
- Dealth of either part of offer
- Destruction of the object of offer
- Withdrawl of offer before it being written
- Counter-offer
binder or letter of intent can serve as an offer
agency relationshipd have no effect on the offer
Purchase and Sale Contracts?
Agreement about how a sale will take place
