Nat 3 Flashcards
A legally enforceable agreement to do or not to do a specific thing
Contract
Requires certain contracts to be in writing to be enforceable and to be signed by the parties or their authorized agents
Statute of frauds
Legally capable individuals who can enter into a binding contract
Competent parties
Money or other valuables such as contributed labor or love and affection
Valid consideration
All parties must agree to all terms
Offer and acceptance
All of the terms have been stated between the parties, either verbally or in writing
Expressed contract
A contract created from the actions or conduct of the parties
Implied contract
All terms have been performed by the parties
Executed contract
All the terms have not been fully performed
Executory contract
A promise is made by one party in return for the promise of another
Bilateral contract
One party makes a promise to induce other party into action
Unilateral contract
The right to buy or lease a property with in a specified period for a specified price and term
Option
Allows the holder to match any offer the owner may receive to buy or lease the property
Right of first refusal
Contract contains all the essential elements
Valid contract
No contract at all, not enforceable by law
Void or invalid contract
Appears to be valid but because of a defect could be over turned by one of the parties
Voidable contract
A contract that is worded loosely or vaguely
Illusory contract
A written employment contract which appoints the broker as the sellers agent for the purpose of finding a buyer
Listing agreement
The listing broker will be paid a commission only if they find a buyer for the property
Open listing
The listing broker will be paid a commission if they or any other broker finds a buyer. No commission if the seller finds a buyer
Exclusive agency listing
The listing broker will be paid a commission if they or another broker or the seller finds a buyer
Exclusive right to sell listing
A listing on a property on which the broker holds an option
Option listing
A written employment contract in which the buyer hires a broker to assist the buyer in locating and acquiring property
Buyer brokerage agreement
Prohibits anti-competitive practices such as
- Different brokerage firms agreeing to fixed commission
- Leading to believe that commissions are non-negotiable
- Geographical non-compete areas
- Boycotting other comp listings
Sherman anti-trust act
Competent parties Valid consideration Offer and acceptance Lawful purpose Be written Proper property descriptions
Elements of a contract
