Real Estate Contract

Question 1

Bilateral Contract

Answer 1

Promise for a promise. Two-sided contract, binding upon both parties

Question 2

Contract

Answer 2

Legally enforceable agreement between competent parties who agree to perform or refrain from performing certain acts for a consideration

Question 3

Electronic Transaction

Answer 3

Online transaction, through email or website. Includes electronic signatures

Question 4

Executed Contract

Answer 4

Completed contract. All terms and conditions fulfilled

Question 5

Executory Contract

Answer 5

Some action needed. Contract not yet finished

Question 6

Express Contract

Answer 6

An oral or written contract in which the parties state the contract’s terms and express their intentions in words

Question 7

Implied Contract

Answer 7

Created by actions. Agreement of parties through acts or conduct

Question 8

Letter of Intent

Answer 8

A document used to summarize terms that would be acceptable to parties. It is a preliminary document that can be created before the actual purchase contract is written, and is not binding

Question 9

Meeting of the Minds (mutual assent)

Answer 9

A complete understanding between the interested parties

Question 10

Offer

Answer 10

A proposal to make a contract

Question 11

Offeree

Answer 11

A person to whom an offer is made. Receiver of offer

Question 12

Offeror

Answer 12

A person who makes an offer. Giver of offer

Question 13

Risk of Loss

Answer 13

A provision in a contract related to potential damage to the property before close of escrow

Question 14

Unilateral Contract

Answer 14

Promise for an act. One-sided contract. Promise made for second party to perform

Question 15

Consideration

Answer 15

The inducement to contract; is something is value, such as money property. Consideration makes a contract enforceable

Question 16

Earnest Money

Answer 16

Money paid to confirm a contract

Question 17

Enforcable

Answer 17

A valid contract, with all of the essential elements present, that is binding on all parties and can be enforced through a court of law

Question 18

Lawful Purpose

Answer 18

One of the four elements for a valid contract

Question 19

Parol Evidence Rule

Answer 19

In court of law, a contract must stand on the written word; no oral explanation is acceptable, except to clarify a written ambiguity

Question 20

Statute of Frauds

Answer 20

A state law that provides that certain contracts must be in writing in order to be enforceable in the courts; established in England in 1677 and adopted in full or in part by all 50 states

Question 21

Unenforceable

Answer 21

Contract that is void and not enforceable in court of law. Barred by statute of limitation or the doctrine of laches

Question 22

Valid

Answer 22

A contract is valid if it will contain all essential elements; legal, enforceable, and binding on all parties

Question 23

Void

Answer 23

To have no force or effect, does not exist

Question 24

Voidable

Answer 24

A contract that seems valid and encforceable, but may be voided by one of the parties