Unit 11 - Real Estate Contracts Flashcards
Define a Contract
A voluntary agreement between legally competent parties supported by legal consideration to perform a legal act
A contract must be what?
Voluntary
An Agreement
Supported by legal consideration
Legal
Define an Expressed Contract
A contract shows their intentions in words
Define an Implied Contract
Demonstrated by acts and conducts
What is the Statues of Frauds for?
A statute stating that certain contracts must be in writing to be enforceable by law
Define a Bilateral Contract
Must have 2 promises, both parties promise to do something
Define a Unilateral Contract
A one sided agreement, has only 1 promise only one party is legally required to act
What are the the elements of a valid contract?
Consideration Legal Purpose Offer Acceptance Competence
Define Consideration
Something of value must be given in exchange for the other parties promise
Define Legal Purpose
Contract must not be for illegal purposes
Define Offer
Must be an offer by one party and acceptance another
Define Acceptance
Agreement to an offer and signing of the contract
Define Competence
Must be of age and have enough mental capacity
Define Valid
Meets all essential elements
Define Void
Has no legal force or effect
Define Voidable
May be rescinded
Define Enforcable
Party can sue to force performance
How can a contract be discharged?
Performance Assignment Novation Breach Statues of Limitations
Define Performance
Contract must be performed with a time limit
Define Assignment
Transfer of rights/duties to a different party
Define Novation
Substitution of contracts
Define Breach
Violation of any terms/conditions
Define Statues of Limitations
Limits the time a lawsuit can be done
What are the types of contracts used in real estate transactions?
Listing Agreements Buyer Agency Agreement Real Estate Contracts Escrow Agreements Option Agreements Leases & Land Contracts
Define a Contract of Sale
One of the most important document in real estate, it establishes legal rights and obligations
