Contracts Flashcards
This deck explores essential contract elements, formation, validity, and termination, with a focus on real estate agreements.
Which real estate term is this?
Occurs when a party agrees to the exact terms of another party’s offer in a contract.
Acceptance
Which real estate term is this?
Expenses owed by the seller but later paid by the buyer, such as property taxes or utility bills.
Accrued Items
Which real estate term is this?
An attachment to an agreement that adds or modifies information in the contract.
Addendum/Addenda
Which real estate term is this?
A change or modification to the existing content of a contract, statute, or regulation.
Amendment
Which real estate term is this?
A transfer of rights or obligations from one party to a third party without canceling the contract.
Assignment
Which real estate term is this?
An offer accepted pending the outcome of a primary agreement, potentially replacing it if it falls through.
Back-up Offer
Which real estate term is this?
A contract where two or more parties agree to exchanges, placing obligations on both.
Bilateral Contract
Which real estate term is this?
Occurs when a party fails to perform their obligations as agreed in the contract.
Breach of Contract
Which real estate term is this?
A court action that can terminate a contract or agreement, or a section/subsection of a contract or agreement, without restoring the parties to their pre-agreement conditions.
Cancellation
Which real estate term is this?
A lease where most rights and obligations are specified in the contract, not subject to fair housing laws.
Commercial Leases
Which real estate term is this?
Benefit, detriment, promise, or value bargained for in a contract, which could be money, property, or a specific action.
Consideration
Which real estate term is this?
A specific event, action, or condition that must occur for an offer or purchase agreement to remain in force.
Contingency
Which real estate term is this?
Duties specifically detailed to each party in a contract, including an implied covenant of good faith.
Contractual Duties
Which real estate term is this?
A response to an initial contract offer, revising terms to be more acceptable, rejecting the original offer.
Counteroffer
Which real estate term is this?
A contract where all parties have completed their obligations.
Executed and Executory Contracts
Which real estate term is this?
A contract made with the intent to create an agreement by all parties.
Express Contract
Which real estate term is this?
A contract not created by express agreement but by the party’s actions as interpreted by the court.
Implied Contract
Which real estate term is this?
A defense to breach of contract when fulfilling the contract is illegal or physically impossible.
Impossibility
Which real estate term is this?
Lack of mental or physical ability to perform basic functions competently, affecting contract formation or duties.
Incapacity
Which real estate term is this?
A critical element of a contract meaning that the parties must each knowingly and purposefully enter into a contract, and their spoken or written words must communicate that intention.
Intent
Which real estate term is this?
One involving a material element of a contract about which both parties are mistaken with regard to a material fact.
Mutual Mistake
Which real estate term is this?
A process of replacing an original contract with a new agreement between the same parties.
Novation
Which real estate term is this?
The action that starts the process of forming a contract.
Offer
Which real estate term is this?
The person or entity receiving an offer, commonly the seller in real estate.
Offeree
Which real estate term is this?
The person or entity making an offer, commonly the buyer in real estate.
Offeror
Which real estate term is this?
A contract invalidated by legal action or required/prohibited by statute.
Operation of Law
Which real estate term is this?
A unilateral agreement where the seller must sell, but the buyer has the option to buy.
Option Agreement
Which real estate term is this?
An agreement between parties for an exchange of promises not written down.
Oral Contract
Which real estate term is this?
When some contract terms have been fulfilled and accepted by the owed party.
Partial Performance
Which real estate term is this?
Doing what is required by a contract.
Performance
Which real estate term is this?
The direct relationship existing between parties to the same contract.
Privity of Contract
Which real estate term is this?
Standardized forms mandated by the governing authority unless otherwise approved by an attorney.
Promulgated Contracts
Which real estate term is this?
An agency relationship where actions are accepted by a principal without prior authority.
Ratification
Which real estate term is this?
Equitable remedy to correct a real estate agreement to reflect true terms.
Reformation
Which real estate term is this?
Non-acceptance of an offer.
Rejection
Which real estate term is this?
Lawful actions by the court to compensate for a contract breach.
Remedies
Which real estate term is this?
When a contract party informs others they will not be bound by its terms.
Repudiation
Which real estate term is this?
Equitable remedy to terminate a contract as if it never existed.
Rescission (and Restitution)
Which real estate term is this?
Key document outlining how a real estate transaction will be conducted.
Sales Contract
Which real estate term is this?
Measurement of whether obligations performed on a contract are substantially fulfilled.
Substantial Performance
Which real estate term is this?
Means a particular action must be completed within a reasonable time period.
Timely Manner
Which real estate term is this?
A contract not recognized by courts due to missing elements or practical enforcement issues.
Unenforceable Contract
Which real estate term is this?
A contract where only one party is obligated to act, such as exercising an option to buy.
Unilateral Contract
Which real estate term is this?
An agreement enforceable by the court(s).
Valid Contract
Which real estate term is this?
A required contract element ensuring it does not involve illegal activities.
Valid Legal Purpose
Which real estate term is this?
Contract made with a party lacking legal capacity, which can be validated or invalidated upon regaining capacity.
Voidable Contracts
Which real estate term is this?
Unenforceable contract with no legal force, often due to illegal purpose.
Void Contracts
Which real estate term is this?
Agreement between parties for an exchange of promises, documented and signed.
Written Contract
Which real estate term is this?
What one party offers in a contract, often as money, in exchange for performance.
Consideration
Which real estate term is this?
A contractual agreement where the buyer purchases property on an installment basis, often occupying it until the total cost is met.
Contract for Deed
Contrast with Closing.
Which real estate term is this?
Grants an agent or brokerage sole right to represent the seller, but the seller can bring the buyer themselves without owing a commission to the listing agent.
Exclusive Listing
Which real estate term is this?
A form of listing agreement where the listing agent is guaranteed a commission regardless of who brings the buyer, as long as the property is sold.
Exclusive Right-to-Sell Listing
Which real estate term is this?
A certificate used to find out about the relationship between landlord and tenant.
Landlord Tenant Estoppel
Which real estate term is this?
The legal standard for competency to form a contract, including age and absence of legal disability.
Legal Capacity
Which real estate term is this?
A contract between the owner of a property and a real estate broker authorizing the broker, for a fee, to market the property in an effort to find a qualified buyer. Regulations vary by state.
Listing Agreement
Which real estate term is this?
When the seller sets an amount of profit they wish to receive from the sale and the licensee is entitled to any amount obtained above that minimum.
Net Listing
Which real estate term is this?
Occurs when the offeree informs the offeror of acceptance on exact terms.
Offer and Acceptance
Which real estate term is this?
Costs incurred by the nonbreaching party in anticipation of contract fulfillment.
Reliance Damages
Which real estate term is this?
Lease types where the property owner pays varying numbers of costs like taxes, utilities, or insurance.
Single, Double, and Triple Net Leases
Which real estate term is this?
An equitable remedy ordering a party to fulfill specific contractual duties.
Specific Performance
Which real estate term is this?
A contract must have this to be enforceable, being possible, legal, and not against public policy.
Valid Legal Purpose
