contracts Flashcards
requires certain contracts to be in writing to be legally enforceable
statute of frauds
occurs when the parties enter into agreement voluntarily with full understanding of contract terms
offer and acceptance
something of LEGAL value offered by one party and accepted by another
consideration
the concept that if a court deems A TERM in the contract to be unenforceable, the remainder of the contract remains enforceable
severability
a contract that appears valid, but one or both parties have a legal right to disaffirm it
voidable contract
a contract that isn’t a contract at all because it lacks one or more of the requirements for a valid contract. It has no legal force or effect; its unenforceable.
a void contract
a contract in which all parties have met all contract terms
an executed contract
contracts are _____ until all of the promises in the contract have been completed
executory
occurs when one party fails to meet contract obligations
breach of contract
when one party meets SOME but not all of the terms of the contract
partial performance
when a breach occurs, the innocent party may unilaterally terminate the contract. this is known as ____
unilateral rescission
a ______ _________ suit seeks to force a party to make good on the promises made
specific performance
a _______ ________ clause limits buyer damages to a return of the earnest money if the seller breaches contract
liquidated damages
when parties have met all contract terms and are discharged from their contractual obligations
contract discharge AKA performance, execution
when one party agrees in WRITING that the other party is no longer held to the provisions of the agreement this is called _______
release
parties to the contract may terminate the contract through ______ ________. this is best accomplished through mutual written release
mutual agreement
_______ means to transfer contractual rights or duties to a new party
assignment
occurs when one contract is substituted for another
novation
the ________ _______ ________ is an attempt to bring some degree of standardization to state laws regarding use of electronic documents and signatures. It gives electronic signatures, records, and contracts the same legal weight as paper records with “wet” signatures
the Uniform Electronic Transactions Act
in a _____ contract, both parties have obligations
bilateral
in a ____ contract, only one party makes a promise
unilateral
the contract clause that means both parties faithfully agree to perform responsibilities within the time limits of the contract
time is of the essence
the contract clause that specifies that any dispute arising under the contract shall be determined in accordance with the law in a particular jurisdiction
choice of law
the contract clause that means one or both parties commit to compensate the other for any harm, liability, or loss arising out of the contract
indemnification
these type of contract clauses define a condition or action that a party must meet in order to not be in breach of contract
contingency clauses
a ____ clause requires the parties to resolve or attempt to resolve their disputes through an arbitration process
arbitration
a _____ clause requires the parties to attempt mediation prior to engaging in arbitration or a legal action
mediation
a ______ ________ clause states the time frame in which a party can file a lawsuit relative to the contract
statue of limitations
an addition to an existing document is a
addendum
a change to an existing contract is a
amendment
the party extending the offer is the
offeror
the party receiving the offer is the
offeree
_____ occurs when all parties have signed a contract
acceptance
_____ _______ occurs when the signed contract is delivered back to the offeror
binding acceptance
conditions that must be met before the agreement of sale is complete and enforceable
contingencies
requires mortgage lenders to follow TILA disclosure requirements for real estate advertisements that include credit terms
regulation Z
a U.S. federal law that requires disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed
Truth In Lending Act of 1968 (TILA)
a consumer protection statute designed to protect homebuyers from unscrupulous lending and settlement practices such as kickbacks and referral fees
the Real Estate Settlement Procedures Act of 1974 (RESPA)
prohibits lenders from making credit unavailable or offering less-favorable terms based on protected class status vs. creditworthiness
the Equal Credit Opportunity Act of 1974 (ECOA)
TRID is an acronym for
TILA/RESPA Integrated
lenders must provide the _______ to applicants within three business days of loan application.
loan estimate
lenders must provide the _______ at least three business days before closing
closing disclosure
a loan category that has certain affordability features
qualified mortgage
unfair or abusive lending to buyers that imposes deceptive, coercive and exploitive practices to take advantage of consumers to increase their debt while financing risky loans
predatory lending
the borrower’s projected monthly housing expense divided by income
housing ratio AKA front end ratio
the total of all the buyer’s debt obligations divided by income
debt to income ratio AKA back end ratio
