General Terms and Phrases

Question 1

Casualty Loss

Answer 1

A loss resulting from the damage, destruction, or loss of property from any sudden, unexpected, or unusual event such as a flood, tornado, fire, earthquake.

Question 2

Contingent Debt (def)

Answer 2

A debt is usually considered contingent if payment is not yet due and will not become due unless a particular event occurs in the future, such as a cosigner on loan

Question 3

Deed In Lieu of Foreclosure

Answer 3

A deed instrument in which a borrower conveys all interest in a real property to a lender. Problematic if junior lien

Question 4

Executory Contract

Answer 4

A contract between a debtor and another person in which both sides have importance performance remaining

Question 5

Executory Contract (examples)

Answer 5

Real estate lease (tenant must continue to pay rent, landlord must continue to provide space), equipment leases, development contracts (development work required/payment made upon milestones), and licenses to intellectual property

Question 6

Ipso Facto

Answer 6

Latin for “by the fact itself”

Question 7

Res Judicata

Answer 7

A matter already judged