Contracts / Purchase And Sale Agreement

Question 0

Assignment

Answer 0

The transfer of rights and interests in property from one person to the other example Assignment of purchase and sale agreement or a mortgage

Question 1

Acceptance

Answer 1

The agreement of one party to a set of terms offered by a second party

Question 2

Bilateral contract

Answer 2

A contract where one party agrees to do something in return for the second parties promise to also do something

Question 3

Bill of sale

Answer 3

A written contract between two parties for the sale of personal property

Question 4

Competency

Answer 4

The state of having legal contractual capacity

Question 5

Consent

Answer 5

One agreeing to terms of a contract does so without duress demonstrated by a notary public taking parties acknowledgment that this is their free act and deed

Question 6

Conservator

Answer 6

An individual appointed by the court to act as a guardian

Question 7

Consideration

Answer 7

Something given in exchange for something from another. Can be an article or a promise to do something. In real estate is usually money exchange for the property As in A deed or money in exchange for a promise to perform as in a purchase and sale agreement

Question 8

Counter offer

Answer 8

The one receiving an offer( offeree )responds by offering a new set of terms as a new offer. The original offeree then becomes the new offer

Question 9

Deed

Answer 9

Written instrument that transfers ownership of real property from one party to another

Question 10

Disclosure

Answer 10

One of the duties of agency ( also known as duty of notice ) that requires an agent to keep his or her principal informed of any matter that is In principals interest

Question 11

Equitable title

Answer 11

Interest held by the buyer when a purchase and sale contract has been signed but prior to transfer of a deed when legal title is obtained

Question 12

Estoppel

Answer 12

Concept where a party cannot exercise rights contrary to a previous representation. Example. A town water bill relied on by a new owner could be challenged by Estopel when a new Higher bill is charged

Question 13

Executed contract

Answer 13

A contract with all parties have fulfilled all terms

Question 14

Executory contract

Answer 14

A contract that has not had the terms completed by one or both parties.

Question 15

Express contract

Answer 15

A contract where the intent of the parties is clearly stated. Maybe verbal or written.

Question 16

Right of first refusal

Answer 16

Right to have the first chance to purchase or lease a piece of property. May or may not specify additional terms such as price

Question 17

Implied contract

Answer 17

A contract with the agreement of the parties is demonstrated by There acts conduct and not by their words or written agreements

Question 18

Lease

Answer 18

An agreement ( written or verbal ) between an owner ( Lessor) and a tenant ( leasee ) to grant the exclusive rights of occupancy to real property for specific period of time

Question 19

Laches

Answer 19

Doctrine that action was not taken in a reasonable period of time. Similar to statute of limitations where time is specified

Question 20

Legal title

Answer 20

Interest obtained by the grantee when the deed is signed and delivered ( compared to equitable title )

Question 21

Legality

Answer 21

Quality of being within law. A contract with an illegal element is void

Question 22

Listing agreement

Answer 22

An agreement between seller and a broker to act as an agent for the sale of real property. Maybe written or verbal

Question 23

Mortgage deed

Answer 23

Conditional conveyance of the property to the bank subject to the borrowers rights of redemption. Refers to as the mortgage

Question 24

Mortgage note

Answer 24

The written promise to pay money borrowed against real property as security

Question 25

Novation

Answer 25

A new obligation is substituted for an old obligation ( a bank accepting a new note with a new mortgagor all for an old note would do so by novation )

Question 26

Offer

Answer 26

A promise by one party to act in a specified Manner providing a second party acts in the manner requested.

Question 27

Offeree

Answer 27

Party receiving an offer from another party( buyer or seller )

Question 28

Offeror

Answer 28

Party extending an offer to another party (buyer or seller )

Question 29

Option

Answer 29

An agreement to keep that offer to purchase or to sell open for some period of time. The party agreeing to the option terms ( usually the seller ) is bound by the option but not the party making the option offer ( usually the buyer ).

Question 30

A written document authorizing one person to act for another to what ever extent specified

Answer 30

Power of attorney

Question 31

Purchase and sale agreement

Answer 31

A written contract for the sale of real property between two parties ( seller and buyer. )

Question 32

Specific performance

Answer 32

A remedy at law with the court will force a party to fulfill his or her part of a contract

Question 33

Statute of frauds

Answer 33

State law that requires certain documents to be in writing to be enforceable

Question 34

Statue of limitations

Answer 34

The time limit within which legal action must be taken to be enforceable. Example In Massachusetts the statue limitations on a prescription and adverse possession is 20 years

Question 35

Suit for damages

Answer 35

One of the legal remedies in the case of a contract default or nonperformance. Suit to recover compensation for financial losses suffered due to the contract nonperformance

Question 36

A contract where one party makes a promise to perform without a second party promise to perform. Example reward for lost property

Answer 36

Unilateral contract

Question 37

Valid

Answer 37

Having legal ,binding force

Question 38

Void

Answer 38

Having no binding legal force

Question 39

Voidable

Answer 39

Having binding force but able to be broken by one of the parties

Question 79

Duress

Answer 79

Force applied to make someone act against his will

Question 80

Caveat Emptor

Answer 80

A principle in law that means “ let the buyer beware”