Contracts Flashcards
Acceptance
Agreement or consent to the terms of an offer, establishing “the meeting of the minds” that is essential to a contract.
Accord & Satisfaction
A compromise under which one party meets part of his or her obligations while the other party relieve him or her of the need to meet the rest.
Assignee
One to whom property, an interest in property, or contractual rights is transferred.
Assignment
The transfer of property or rights to another.
Backup Offer
A purchase offer excepted by seller that will become active if a prior offer falls through.
Clause, Automatic Extension
Provision that at least will renew automatically under its original terms unless one party notifies the other changes.
Clause, Escalator
A condition in a contract that permits terms to be adjusted upward or downward in the event of certain contingencies, usually tied to an index or event. Often used in long term leases to allow rent adjustments when taxes or maintenance cost increase.
Clause, Hold-Harmless (also: Exculpatory Clause)
A provision that releases the landlord from any liability, regardless of his or her negligence, in connection with damage to a tenant’s property or business as a result of an insurable casualty. Also called an exculpatory clause.
Clause, Nondisturbance
A stipulation that foreclosure of a previous mortgage does not terminate a lease.
Clause, Protection (also: Carryover, Extender, or Safety Clause)
A requirement that a broker is entitled to a commission if, within a specified time after a listing expires, the property is sold to someone who became aware of it due to the broker’s actions during the listing period. (e.g., the broker showed it to the eventual buyer) Also called a carryover, extender, or safety clause.
Clause, Recapture
A condition that permits termination of the lease if the tenant does not realize a specified level of business.
Coercion (also: Duress)
The act of forcing a person to do something against his or her will. Also called duress.
Compensatory Damages
An amount determined by a court or arbitrator to be the actual loss suffered as a result of breach of contract.
Consideration
Anything given by one party — for example, property, personal services, money — to induce another to enter into a contract.
Constructive Eviction
A landlord’s actions of failure to act that caused a tenant to vacate the property because it’s dangerous or uninhabitable.
Contingency
A provision that requires completion of a certain act before the contract is binding.
Contract
An agreement that has four essential parts:
parties capable of entering into a contract, consent of the parties, a lawful object of purpose, and consideration.
If the contract is for the sale of real property, it must also be in writing and signed.
Contract, Bilateral
…..
Contract, Capacity
…
Contract, Executed
A condition in which both parties to the contract have fully satisfied its terms.
Contract, Executory
….
Contract, Express
…
Contract, Implied
An agreement that results from the actions, rather than the words, of the parties.
Contract, Unilateral
A pact obligating only one party.
Contract, Valid
An accord that contains all the essential elements and is binding and enforceable upon both parties.
Contract, Void
An agreement that has no force or or effect because it’s missing one more essential elements.
Contract, Voidable
An agreement that is enforceable but subject to rescission by one party.
Corporate Resolution
The document authorize a specific people to legally sign for the corporation.
Counteroffer
Any change by the seller in a buyer’s written offer.
Damages
……
Duress
Unlawful constraint to force another person to do something against his or her will.
Earnest Money
A deposit by a purchaser of a real estate as evidence of good faith. (It does not constitute the buyers consideration for the contract.)
Exclusive Right to Sell
…
Execute
To sign; to perform.
Expansion Option
An opportunity for the lessee to expand the amount of space leased.
