Unit 4 - Contracts: the Basics

Question 1

Counteroffer

Answer 1

The rejection of an original offer that becomes a new offer.

Question 2

Offer

Answer 2

A presentation or proposal for acceptance to form a contract.

Question 3

Consideration

Answer 3

Something of value – such as money, a promise, property, or personal services.

Question 4

Tender

Answer 4

An offer by one of the parties to carry out his or her part of the contract.

Question 5

Statute of Frauds

Answer 5

The law that requires contracts to be in writing.

Question 6

Waiver

Answer 6

The relinquishment or refusal to accept a right.

Question 7

Assignor

Answer 7

The person transferring a claim, benefit, or right in property to another.

Question 8

Specific performance

Answer 8

A court action brought to compel a party to carry out the terms of a contract.

Question 9

Executory contract

Answer 9

A contract in which obligation to perform exists on one or both sides.

Question 10

Revocation

Answer 10

The canceling of an offer to contract by the person making the original offer.

Question 11

Assignee

Answer 11

Party to whom a lease is assigned or transferred.

Question 12

Recission

Answer 12

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.

Question 13

Offerer

Answer 13

The party making an offer.

Question 14

Novation

Answer 14

The substitution by agreement of a new obligation for an existing one.

Question 15

Express contract

Answer 15

Parties declare the terms and put their intentions in oral or written words.

Question 16

A written contract takes precedence over oral agreements. This principle is expressed by the

Answer 16

Parol evidence rule

Question 17

The substitution of an obligation or contract with a new one is called…

Answer 17

Novation

Question 18

A _______ contract is an agreement in which each person promises to perform an act in exchange for another person’s promise to perform.

Answer 18

bilateral

Question 19

Duress is unlawful and makes the contract void/voidable.

Answer 19

Voidable.

Question 20

According to the ________ __ _________, sufficient writing is required for an enforceable real estate contract.

Answer 20

Statute of Frauds

Question 21

The following items are essential for a valid contract:

Answer 21

1. capacity
2. mutual consent
3. lawful object
4. consideration

Question 22

According to the Statute of Frauds, the employment agreement must be in ___________ to be enforceable.

Answer 22

In writing

Question 23

Tender of Performance:

Answer 23

Is an offer by one of the parties to carry out his or her part of the contract.

Question 24

Forbearance

Answer 24

Forgiving a debt or obligation, or giving up an interest or a right.

Question 25

Contracts are discharged by performance, release, assignment, novation, and ________

Answer 25

breach

Question 26

The statute of limitations is ____ years for actions on any written contract, which includes most real estate contracts.

Answer 26

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