unit 11

Question 1

What is the statue of frauds?

Answer 1

this requires most contracts to be in writing and signed by all parties to be enforceable

requirements includes all contracts for the transfer of interests in real estate

Question 2

What are the statue of limitations?

Answer 2

this prescribes the amount of time parties have for bringing certain kinds of legal action

Question 3

What is an implied contract

Answer 3

actions indicate intent but are not tranfer of any itnerest in real estate

Question 4

What is an express contract

Answer 4

means oral or written

to be enforcebal the contracts must be express written contracts

Question 5

What is Bilateral?

Answer 5

promise exchange for a promise
both parties are bound to perform

“I promise to sell if you promise to buy”

Question 6

What is unilateral?

Answer 6

a promise to exchange for performance
one party is bound

I promise to sell if you decide to buy

Question 7

What is a Valid contract?

Answer 7

it meats all legal requirements and contains all essential elements
enforceable

Question 8

What is a void contract?

Answer 8

unenforceable or

lacks one or more of the essential elements of a valid contract

Question 9

what is a voidable contract?

Answer 9

can go either way
it may appear valid but one party may disaffirm because the party is a minor or was subject to duress, fraud or misrepresentation

Question 10

Essential elements of a valid contract are:

Answer 10

contractual capacity legally competent parties: 18, sober and sane
Mutual agreement: must have an offer and acceptance
Lawful objective: must have a legal purpose
Consideration: money, promises, or something of value (NOT EARNEST MONEY)
In writing and signed

Question 11

What is Executory performance?

Answer 11

duties not fully performed or incomplete

Question 12

what is Executed performance?

Answer 12

duties fully performed

Question 13

What is an Addendum?

Answer 13

additional material attached to and made part of an offer, disclosures and contingencys

Question 14

what is an amendment?

Answer 14

its a modification of an existing contract by mutual agrerement

Question 15

what is an assignment?

Answer 15

it transfers contract rights but not liability

Question 16

What is a contingency?

Answer 16

the contract is terminated if a contingency cannot be met

Question 17

What is a mutual rescission?

Answer 17

all parties agree to cancel the contract and earnest money is returned

Question 18

Terms of a lease contract?

Answer 18

terminates on a specific date or by notice per the lease

Question 19

Who a breach of contract occurs

Answer 19

when one party is in default

Question 20

purchase contract

Answer 20

also known as offer to purchase contract of sale or purchase agreement

Question 21

What is an option?

Answer 21

a buyer purchases the right to buy at a set price for a set time
the owner is optionor
buyer is optionee
option fee: typically non refundable

Question 22

What is a lease purchase?

Answer 22

used when a buyer wants to purchase a property but cannot qualify for financing

Question 23

what is a right of first refusal?

Answer 23

the right to have the first opportunity to purchase or lease real property

Question 24

What is a sale leaseback?

Answer 24

owner sells property to investor and then leases it back