The Elements of a Valid Contract and How a Contract may be Terminated

Question 1

What 5 criteria are needed to be met for a real estate contract to be valid?

Answer 1

1. Competent Parties
2. Mutual Agreement
3. Lawful Objective
4. Consideration
5. In Writing

Question 2

What does the Statute of Frauds require?

Answer 2

That certain contract must be in writing. Real estate contracts that transfer an interest in real property fall in this category, with the exception of a lease with a term of 1 year

Question 3

What causes can create a termination of a contract?

Answer 3

• Performance
• Infeasibility
• Mutual agreement
• Assignment of a contract
• Operation of law

Question 4

What’s another term for the termination of a contract?

Answer 4

Cancellation and Discharge

Question 5

The Statute of Limitations restricts the time period for _

Answer 5

Which an injured party in a contract has the right to bring a lawsuit against the other party

Question 6

A breach of contract gives the damaged party the right to take legal action in one of these ways:

Answer 6

• Rescission
• Forfeiture
• Suit for damages
• Suit for specific performance

Question 7

What is a reformation necessary for?

Answer 7

Necessary to correct or modify the contract that has a mechanical or clerical error