Session 12

Question 1

Boiler plate

Answer 1

Standardized language used in contracts for the sake of efficiency and completeness.

Question 2

Consideration

Answer 2

Something of value given to another as compensation for entering into a contract.

Question 3

Contract

Answer 3

An agreement that the law will enforce. The elements are mutual ascent (offer and acceptance), consideration, competent parties, legal subject matter, and sometimes that the contract in writing if required by the statute of frauds.

Question 4

Duress

Answer 4

Using unlawful force or intimidation against a person to enter into a contract.

Question 5

Earnest money deposit

Answer 5

Money given by a buyer upon signing a sales contract, showing the buyers intention to carry out the terms of the contract. Earnest money is an inducement and a show of good faith not consideration and it is not necessary for a valid contract to exist.

Question 6

Laches

Answer 6

A concept preventing the assertion of a right or claim because of an undue delay

Question 7

Addendum

Answer 7

Items of additional material that are attached to an existing contract to explain, modify, or revoke elements of the contract.

Question 8

Amendment

Answer 8

A formal revision to a contract to add, remove, or update elements found in the contract.

Question 9

Assignment

Answer 9

The transfer of one person’s interests under a contract to another. Assignment does not release the assignor from the obligations stated in the contract.

Question 10

Breach

Answer 10

An unexcused failure to perform according to the terms of a contract.

Question 11

Contingency

Answer 11

Provision in a contract or D that makes the parties rights and obligations depend on the occurrence or non-occurrence of a particular event.

Question 12

Liquidated damages

Answer 12

A sum of money that parties to a contract agree in advance at the time of entering into the contract will service compensation in the event of a contract breach.

Question 13

Novation

Answer 13

The release of liability of the original party to an agreement, for example, a borrower on a note or a tenant on a lease, and the substitution of the subsequent borrower or tenant with the approval of the lender or landlord.

Question 14

Offeree

Answer 14

A person who receives an offer or to whom an offer is made.

Question 15

Offeror

Answer 15

A person who makes an offer.

Question 16

Optionee

Answer 16

The buyer who has a right to purchase or lease property under the terms of an option agreement that is not obligated to do so.

Question 17

Optionor

Answer 17

The property owner who is obligated to sell or lease property under the terms of an option agreement if the option he exercise the option

Question 18

Rescission

Answer 18

Do you Norman have a contract by mutual consent of the parties. Verb form: to rescind.