Unit 4 - Contracts: the Basics Flashcards
Counteroffer
The rejection of an original offer that becomes a new offer.
Offer
A presentation or proposal for acceptance to form a contract.
Consideration
Something of value – such as money, a promise, property, or personal services.
Tender
An offer by one of the parties to carry out his or her part of the contract.
Statute of Frauds
The law that requires contracts to be in writing.
Waiver
The relinquishment or refusal to accept a right.
Assignor
The person transferring a claim, benefit, or right in property to another.
Specific performance
A court action brought to compel a party to carry out the terms of a contract.
Executory contract
A contract in which obligation to perform exists on one or both sides.
Revocation
The canceling of an offer to contract by the person making the original offer.
Assignee
Party to whom a lease is assigned or transferred.
Recission
Legal action taken to repeal a contract either by mutual consent of the parties or by one party when the other party has breached a contract.
Offerer
The party making an offer.
Novation
The substitution by agreement of a new obligation for an existing one.
Express contract
Parties declare the terms and put their intentions in oral or written words.
A written contract takes precedence over oral agreements. This principle is expressed by the
Parol evidence rule
The substitution of an obligation or contract with a new one is called…
Novation
A _______ contract is an agreement in which each person promises to perform an act in exchange for another person’s promise to perform.
bilateral
Duress is unlawful and makes the contract void/voidable.
Voidable.
According to the ________ __ _________, sufficient writing is required for an enforceable real estate contract.
Statute of Frauds
The following items are essential for a valid contract:
- capacity
- mutual consent
- lawful object
- consideration
According to the Statute of Frauds, the employment agreement must be in ___________ to be enforceable.
In writing
Tender of Performance:
Is an offer by one of the parties to carry out his or her part of the contract.
Forbearance
Forgiving a debt or obligation, or giving up an interest or a right.
Contracts are discharged by performance, release, assignment, novation, and ________
breach
The statute of limitations is ____ years for actions on any written contract, which includes most real estate contracts.
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