Contracts Flashcards
Legal essentials of a contract are (CMLC)
Capable parties, mutual consent, lawful objection, consideration
A valid contract is
Has all legal essentials
A void contract is
If missing even one essential, underage party, illegal consideration
A consideration is
Valuable, good, sufficient, adequate
What is a novation
One party or obligation substituted for another
Whats in a contingency
Nature, duration, method removed
What type of contracts do not need to be in writing
Personal property listing or lease for 1 year or less
A party able to enter into a contract
An emancipated minor
What does it mean when a mutual consent in real estate contracts
Offer and acceptance
What describes a cloud mutual consent
Misrepresentation, threats, duress
A voidable contract describes as
Binding until rescinded, not illegal purpose, fraud, misrepresentation
Actual fraud is described as intent to
Intent to deceive
Constructive fraud is
Negligence
If buyer loses ability to complete the purchase
The contract is unenforceable
In a purchase contract (offer to purchase) when is the effective date
Final acceptance delivers to offeror, when all parties signed
In a breach of the purchase contract, the buyer can sue seller within
Within 4 years
If a purchase contract is signed by only 1 spouse
It is unenforceable
In a purchase contract, what does “As Is” represent
Seller not willing to make repairs. Only includes observable conditions.
If seller backs out, what can the buyer do
Buyer (not broker) sues for specific performance
On owner occupied, liquidated damages cannot generally exceed coverage of
3% of purchase price
When do you receive copy of signed purchase contract
At time of signing
Purchase contract contains what aspect of time
Time is of the essence
Where does the contingency removal clause exist
In purchase contracts
What is a counteroffer
Rejection of original offer and a new one