Contracts Flashcards
Counteroffer
Reject offer, present new offer
Earnest Money
Buyers evidence of good faith submitted with offer
Effective Date of a Contract
Date which last party signed
Fully Executed Contract
Contract signed and carried out.
Sales contract at closing.
Real Estate Contract
A written promise to pay, by buyer, written promise to deliver deed by seller
Implied Contract
By actions or evidence not written or spoken
Time is of the Essence
Clause, allows each to hold the other to strict performance on specified date.
Unilateral Contract
Only one party made a promise and can be sued
Option Contract
Unilateral contact, one part has option to buy at present price with negotiated time period.
Executory Contract
Contract signed by parties but not yet carried out.
Sales contract before closing or contract for deed
Contingency
Condition not yet met
Ex. Financing, inspections, etc.
Mutual Rescission
Parties agree to cancel contract
Default
Non-performance of duty under contract
Breach of Contract
One of the parties is in default
Unenforceable Contract
Won’t be enforced by the courts
Oral Real Estate contract
Violates the statute of frauds
Consideration
something of value given
buyer’s promise to pay in exchange for seller’s promise to deliver deed
Express Contract
written or spoken
Offer and Acceptance
Meeting of the minds or mutual agreement
all parties concerned understand and agree to all the terms of the contract
Valid Contract
agreement that meets all the legal requirements of a contract
Competent Parties
Sane, sober, consenting adults (18yrs or older)
