National 3 Vocabulary Flashcards
A contract that is worded loosely or vaguely and is unenforceable.
Illusory Contract
A written employment contract which appoints the broker as the seller’s agent for the purpose of finding a buyer.
Listing Agreement
Money or other valuables such as contributed labor of love and affection (gift).
Valid Consideration
A legally enforceable agreement to do or not to do a specific thing. A promise or a set of promises the courts will enforce
Contract
A contract containing all essential elements
Valid Contract
Requires contracts to be in writing to be enforceable
Statute of Frauds
A person who has legal capacity to enter into a contract
Competent Party
An invitation to enter into a contract
Offer
The point at which all parties have agreed to all terms & conditions
Acceptance
A contract created by a party’s actions
Implied Contract
A contract which has been fully performed
Executed contract
The essential elements of a contract are:
Competent parties Consideration Meeting of minds Lawful purpose Be in writing Proper property description
A contract in which all the terms are specified
Expressed Contract
A contract in which all terms have yet to be performed
Executory Contract
A contract in which each party makes a promise
Bilateral Contract
The purpose (objective) of a contract must be lawful
Legal Object (Legal Purpose)
A contract in which only one party makes a promise
Unilateral Contract
A contract requiring one person to give another the initial opportunity to buy a property
Right of First Refusal
A listing in which the broker keeps a portion of the sales price above an amount agreed to by the seller
Net Listing
A contract which has no force or effect on any party
Void Contract
A listing in which the broker will be paid only if the broker finds a buyer
Open Listing
An exclusive listing in which the seller reserves the right to find a buyer and not pay the broker
Exclusive Agency Listing
A listing in which the seller pays the broker even if the seller finds a buyer
Exclusive Right to Sell
A contract giving exclusive rights to buy a property within a specific time
Option
A listing in which the broker also has the right to buy the property
Option Listing
A contract which could be overturned by one or both parties
Voidable Contract
This law limits monopolies and prohibits price fixing
Sherman Anti-Trust Act
An employment contract in which the buyer hires the broker
Buyer Brokage Agreement
Someone who has reached the age of majority
Adult (Competent Party)
Formulas for area, total cost, and cost per square unit
Cost per unit = Total cost / # of units Total cost = Cost per unit X # of units # of units = Total cost / Cost per unit
