Contracts and Offers Flashcards
Acceptance must be …
Must be unconditional and unequivocal
Written without modifications
Any changes, operates as a rejection
When is or is not a contract binding
Acceptance of contract is the exact moment contract becomes binding.
Buyer can revoke offer anytime before Seller accepts and not be binding
Irrevocable Offers
Must be supported by valuable consideration to be irrevocable.
Option contract is created.
Counter-offer
Signed, Sealed and Delivered Back
Operation of Law
Offer terminates after passage of a reasonable time
Time is of the essence
Obligations must be performed within any stated deadlines.
Voidable Contract
- Entered into by minor
- Induced through misrepresentation
Unenforceable Contract
- Oral communication (avoids Statute of Frauds);
- Party attempts to force after Statute of Limitations
Statute of Frauds
- Certain contracts must be written to enforceable
1. Sale or transfer of lands
2. More than 1 year
3. Sale of goods more than $500
4. Contracts to pay a commission
Contract Essentials
Legal Capacity
Lawful Subject Matter
Consent
Proper Legal Form
Condition Precedent
Contingent offer - one must do something before the contract is binding. (eg. obtain a loan)
If condition fails, buyer is released from agreement
Condition Subsequent
Property not delivered in same condition (eg. Fire or other casualty) buyers obligation is extinguished
Equitable Title
Actual Ownership Interest
Legal Title
Deed itself
Both equitable and legal title converts property
Assignment to Contract
Assigns remaining balance of rights; except property, must create a new deed
