Contracts Flashcards
The term rescission means ____.
The correct answer is:
termination of all contractual obligations with refund of any consideration already paid
Explanation:
The status prior to entering the agreement is reestablished.
A mutual release is ____.
The correct answer is:
the same as rescission, but without refund of consideration already paid
Explanation:
Both parties walk away fully with no refunds.
To what do liquidated damages refer?
The correct answer is:
an amount determined in advance of breach (i.e., earnest money)
Explanation:
This is the financial impact of the breach that has already been stated in the contract.
What are compensatory damages?
The correct answer is:
Compensatory damages are the amount determined by the court or an arbitrator for breach.
Explanation:
This is the financial impact of the breach that is determined outside of what is stated within the contract.
The covenant of ____ guarantees that the grantor is the owner of the property and has the right to transfer ownership.
The correct answer is:
seisin [律]依法占有(财产)
Explanation:
A covenant of seisin is under the general warranty deed.
The covenant of ____ guarantees that there is no other person who can claim ownership of the property.
The correct answer is:
quiet enjoyment
Explanation:
A covenant of quiet enjoyment is under the general warranty deed.
The covenant against ____ guarantees that the property has no encumbrances, such as liens, easements, etc.
The correct answer is:
encumbrances
Explanation:
A covenant against encumbrances is under the general warranty deed.
A covenant of ____ guarantees that the grantor will obtain and provide documents to clear up any title problems, if necessary.
The correct answer is:
further assurance
Explanation:
A covenant of further assurance is under the general warranty deed.
A covenant of ____ guarantees that the grantor will pay all costs to clear up title problems at any time in the future.
The correct answer is:
warranty forever
Explanation:
A covenant of warranty forever is under the general warranty deed.
A(n) ____ deed allows that the grantor has title to the property and that nothing was done to the title during the grantor’s ownership. If a problem does exist, the grantor must correct it.
The correct answer is:
special warranty
Explanation:
The limited warranties of this type of deed allow a third party to represent the conveyance of the property without having owned it.
A(n) ____ deed, which may only be relevant in a few states, allows that the property has not been conveyed to anyone else and that no encumbrances exist on the property, except those already listed.
The correct answer is:
grant
Explanation:
A grant deed is used only in a few states. The guarantees only hold up for the period of time the grantor owned the property.
A(n) ____ deed has no warranties. While the grantor holds title, there is no protection for the grantee.
The correct answer is:
bargain and sale
Explanation:
These types of deeds are often used during foreclosures. Warranties can be added to this deed.
