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Real Estate Study > Contracts Review > Flashcards

Contracts Review Flashcards

1
Q

A Contract that specifies that something NOT be done is called a contract for:

A

Forbearance

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2
Q

A Verbal Contract is called :

A

Parol Contract; A verbal contract is is one type of an expressed contract A verbal or oral contract is called a PAROL CONTRACT

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3
Q

A CONTRACT in which the parties SPECIFICALLY STATE THEIR INTENT TO ENTER INTO AN AGREEMENT IS CALLED AN

A

ESPRESSED CONTRACT.

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4
Q

A CONTRACT WHICH IS EITHER WRITTEN OR ORAL IS AN

A

EXPRESSED CONTRACT

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5
Q

A contract which is created by the ACTS of the parties is called an

A

Implied contract : like getting in a taxi implies I’ll pay and it implies he will take me where I want to go.

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6
Q

A contract neither written or oral is an

A

Implied contract

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7
Q

A contract that meets all the requirements of the law is called a

A

VALID Contract

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8
Q

an Executory Contract

A

is one of which all requirements have NOT been completed.

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9
Q

An unenforceable contract is often a contract that is

A

ORAL

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10
Q

Voidable Contracts

A

Can be enforced b one party

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11
Q

A contract that will stand up in court is

A

Valid and enforceable

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12
Q

A contract that is binding on only one party is

A

Voidable; The other party may choose to either reject or accept.

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13
Q

Where one party is entitled to rescind the contract by reason of the other party’s misrepresentation,

A

A contract that can be rescinded is VOIDABLE.

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14
Q

A CONTRACT THAT IS VOIDABLE but not yet Rescinded is

A

Valid

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15
Q

A contract in which both parties promise to give up something is a

A

BILATERAL CONTRACT

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16
Q

A REAL ESTATE CONTRACT

A

is a Bilateral Contract

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17
Q

A Real Estate Contract is also a

A

Expressed Contract

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18
Q

Unilateral Contract

A

only one person is giving up something

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19
Q

A sales bonus offered to a salees persons by a company is a

A

Expressed contract

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20
Q

A sales bonus offered to salespersons by a company is a unilateral contract WHY

A

only the company makes a promise to give up something, therefore it is a UNILATERAL CONTRACT

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21
Q

A CONTRACT where all requirements have been fulfilled and the parties have done what they agreed to do is called an

A

EXECUTED CONTRACT

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22
Q

EXECUTORY CONTRACT

A

A CONTRACT WHERE ALL REQUIREMENTS HAVE NOT BEEN COMPLETED.

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23
Q

In a home sale, the seller promises to give his home to the buyer and the buyer promises to give him money. This is known as

A

Consideration

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24
Q

Once an offer is made, It can be withdrawn

A

until the acceptance is communicated. Only the person who made the offer can withdraw it.

25
Q

The minor is not bound to the contract , so

A

contracts with minors are voidable

26
Q

A contract made by a person who was intoxicated is typically

A

VOIDABLE!

27
Q

IF A PERSON signs a contract and is later judged to have been incompetent at the time of signing,

A

The contract is VOIDABLE! IF PERSON IS INCOMPETENT WHEN SIGNING THEN ITS VOID.

28
Q

Someone who is appointed to act on behalf of someone else in a specific act is called an

A

attorney-in-fact

29
Q

Novation VATION

A

Novation is the process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract. This means that the original party transfer both the benefits and burdens under the contract.

30
Q

If a novation of a contract is made, the assignor has

A

NO responsibility for performance.

31
Q

With Assignment, the assignor is still ultimately liable for performance if the assignee faiols to perform.

A

However, with NOVATION, the withdrawing party (assignor) is released from liability

32
Q

In an Option contract , the option period

A

must be specified

33
Q

The sales price for property in an option contract must be agreed or when the

A

Option contract is signed.

34
Q

Exercising the option occurs when the the Optionee…

A

chooses to buy the property

35
Q

An Option can be exercised by

A

The optionee only

36
Q

An option Contract requires payment of consideration by

A

the Optionee

37
Q

When an OPTION CONTRACT IS exercised, a binding sales contract

A

is automatically in effect.

38
Q

In the case of an option contract for real property, a broker normally earns a commission when?

A

When the option is exercised.

39
Q

Options Contracts are assignable

A

Unless prohibited in the contract.

40
Q

During the option period, the interest in the property is held by the optioner is

A

LEGAL TITLE.

41
Q

WHEN AN OPTION IS EXERCISED BUT THE SALE HAS NOT CLOSED, THE INTEREST HELD BY THE OPTIONEE

A

IS EQUITABLE TITLE (The right to obtain full ownership of a property

42
Q

Option Contract is Unilateral because

A

Its just one person is obligated. the offeror

43
Q

A right to buy property which has NO fixed price and NO time limit is called a

A

Right of first refusal

44
Q

When a seller breaches a sales contract, the buyer may do all of the following : Sue for Monetary Damages
Rescind the contract
sue for specific performance BUT

A

He can not sue for possession of property

45
Q

A suit in court to force a party to a contract to complete the requirements of the contract is called a suit for

A

Specific Performance

46
Q

The seller or the buyer is more likely to win a suit for specific performance.

A

The Buyer

47
Q

“Time is of the Essense”

A

Phrase meaning a party is in breach of contract if he fails to perform by the specified deadline

48
Q

A written agreement where in a seller agrees to sell and buyer agrees to buy real estate on the terms and conditions set forth there in is called

A

Contract of Sale

49
Q

Earnest Money

A

Is not legally necessary

50
Q

If a contract offer is not accepted with in the specified time period , it

A

TERMINATES

51
Q

ANY change in a contract offer by the offeree results in _____

A

termination of the original offer.

52
Q

A contract of sale accepted by the seller with the stated understanding that th4e seller has already accepted a prior offer is

A

A back-up Offer.

53
Q

Binder is

A

A short purchase contract used in some states to secure a real estate transaction until a more formal contract can be prepared by an attorney

54
Q

A contract of sale under which the seller retains legal title while the buyer takes possession is called a

A

INSTALLMENT CONTRACT

55
Q

LAND CONTRACT, CONTRACT FOR DEED , CONTRACT FOR TITLE AND BOND FOR TITLE ARE ALL NAMES FOR

A

INSTALLMENT CONTRACTS

56
Q

AFTER AN INSTALLMENT CONTRACT IS CLOSED…THE LEGAL TITLE IS HELD BY THE

A

SELLER;

THE BUYER HOLD THE EQUITABLE TITLE

57
Q

THE BUYER OF THE PROPERTY OF AND INSTALLMENT CONTRACT DOES WHAT?

A

PAYS THE PROPERTY TAXES, AND THE INTEREST ON LOAN PAYMENTS IS DEDUCTED FOR TAX PURPOSES.

58
Q

“equitable title”

A

refers to a PERSON’S RIGHT to obtain full ownership of a property or property interest.

Real Estate Study (28 decks)

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