NCh4 Contract Performance

Question 1

The term used when all the terms and conditions of the contract have been met and carried out where it is considered performed or discharged is

Answer 1

Executed

Question 2

A contract that is signed, but not yet carried out is called an

Answer 2

Executory contract

Question 3

If a contract meets a requirements of a contract of 1, 2, 3, and 5 it is

Answer 3

Valid

Question 4

A contract that has NO binding effect on the parties who made it, for example, an agreement with someone who is documented as insane is an

Answer 4

Void or invalid contract

Question 5

In what type of agreement does one party have the right to withdraw or resend for example, a minor, someone who has signed under duress, or is under the influence of alcohol and or drugs

Answer 5

Voidable

Question 6

Absence of legal ability, competence, or qualifications can be described as in capacity, and the contract can’t be said to be. . .

Answer 6

Voidable due to incapacity

Question 7

The type of AGREEMENT that violates the statute of frauds, and will not be ENFORCED by the courts like a verbal real estate agreement is called an

Answer 7

Unenforceable agreement

Question 8

For the reasons of bankruptcy, foreclosure, new laws, making it illegal, destruction of property, a contract may be. . .

Answer 8

Terminated

Question 9

What happens if one of the parties to a contract dies?

Answer 9

The contract will be binding on their heirs

Question 10

If the parties to a contract, agree to cancellation, thus terminate the contract, this is called. . .

Answer 10

Mutual rescission

Question 11

The non-performance of a duty under contract is called. . .

Answer 11

Default

Question 12

Damages set out in a contract are called

Answer 12

Liquidated damages

Question 13

Damages that punish the defaulting party are called

Answer 13

Punitive damages

Question 14

Damages set to cover the actual injury or economic loss are called. . .

Answer 14

Compensatory damages

Question 15

All contracts that relate to the transfer of any interest in real estate must be in writing to be. . .

Answer 15

Enforceable

Question 16

A clause in a contract that allows each party to hold each other, to strict performance, by the date specified is called. . .

Answer 16

Time is of the essence

Question 17

The type of contract, a new party will step in and replace the existing party but not changing the agreement is called

Answer 17

Assignment

Question 18

In a _______, a new contract is substitute for existing contract

Answer 18

Novation