Contracts 18%

Question 1

Valid contract requirements:

Answer 1

Made voluntarily, legal purpose, legally competent parties, consideration, offer and acceptance

Question 2

Contracts may be valid but unenforceable. For instance, a voidable contract is valid but may not be enforceable in a court of law. Provide example below.

Answer 2

A teenager signing a contract.

Question 3

Voidable definition

Answer 3

Appears valid but a party has a legal right to dis-affirm it.

Question 4

Void definition

Answer 4

Not a contract because it lacks one or more of legal contract requirements.

Question 5

Executory?

Answer 5

contracts for the sale of RE are executory until the deed is delivered and accepted.

Question 6

Contract acceptance
Define acceptance
Define binding acceptance

Answer 6

An offer is not a contract until it is signed by (accepted by) the seller and delivered (physically or electronically) to the buyer or the buyer’s agent
ACCEPTANCE occurs when all parties have signed a contract
BINDING ACCEPTANCE occurs when the signed contract is delivered back to the offeror.

Question 7

amendment definition

Answer 7

Changes one or more original contract terms
For example, if the closing date must be changed or the buyer decides they want the curtains to remain and the seller agrees (after the original contract noted the seller was taking them), the parties can execute an amendment outlining the additional agreement between them.

Question 8

addendum definition

Answer 8

Addresses terms that were not in the main body of the contract form.

Question 9

Oral contracts for the sale of RE?

Answer 9

Unenforceable in court even if it has all the requirements

Question 10

UETA?

Answer 10

Wet signature allowable if parties agree upon it; state laws take precedence over UETA

Question 11

Being under duress or contracts entered into a threat?

Answer 11

Voidable.

Question 12

Listing agreement details…

Answer 12

For instance, if the broker fails to advertise the property the seller could terminate the listing; If a party breaches their duty the other party can terminate their listing.

Question 13

Exclusive agency listing?

Answer 13

Owner sells the house themselves, agent gets no commission.

Question 14

Statute of frauds ?

Answer 14

Documents must be in writing to be enforceable; if not completed in one year it must be in writing.

Question 15

Define Novation

Answer 15

When a new contract replaces the initial contract

Question 16

Doctrine of estoppel def

Answer 16

States that a position can not be taken that contradicts a prior position.