Unit 6 Real Estate Contracts Flashcards
A contract whose terms have been explicitly declared either verbally or in writing is an:
Express contract
A contract in which one party has the right to void the contract is a :
Voidable contract
A contract created by the actions of the parties is an:
Implied contract
A contract with a minor will be:
Voidable
A lease agreement in which the tenants pays rent only is a :
Gross lease
A lease agreement where the tenant pays rent plus operating expenses is a:
Net Lease
A unilateral contract in which the buyer has the right to purchase a property from the seller if the buyer chooses to do so is an:
Option
A party attempting to enforce an oral executory real estate purchase contract would be stopped by the :
Statute of frauds
___________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given.
Mutual agreement
True or False
Party who makes an offer to another is known as the offeror.
True
An accepted offer becomes biding on the offeror upon:
Communication of acceptance
Actual knowledge to enter into a contract by intentionally deceiving a party is :
Fraud
Something of value given in exchange for something else of value is:
Consideration ( A Dime, A Dollar, a Doughnut)
May be required as part of liquidated damages in a purchase contract and is not consideration.
Earnest Money
Additonal material attached to and made part of an offer is an:
addendum
To modify a written contract, both parties must sign an:
amendment
The buyer has equitable title in an:
Executory contract
The right of parties to a contract to sue each other to perform the terms of the contract is :
Specific performance
When the seller keeps only the earnest money or other things of value of a buyer who is in default, the contract remedy is :
Liquidated damages
Contracts can be either:
Oral or written
Bilateral contract is:
Promise exchanged for a promise, both parties bound to perform.
Unilateral contract is:
Promise exchanged for performance by other party, only one party bound.
A valid contract :
Meets all legal requirements; has all essential elements.
A void contract:
Has no legal effect; not enforceable by either party. Lacks essential elements of a valid contract.
A voidable contract:
One party is not bound, but the other is( because one party is a minor, or because of fraud, duress, or misrepresentation.
True or False
Strike through changes on an offer must be initialed ( and dated for clarity) by all parties to be enforceable.
True
All parties must abide by the terms of the contract or be in:
Breech
True or False
Legally, a rejection terminates the original offer.
True
Puffing is:
the act of making a claim that anyone would understand is not literally true.
Caveat Emptor means:
“Let the buyer beware.”
not common in most states due to disclosure.
Statute of limitations:
Sets forth the amount of time that the non breaching party has to take legal action against the breaching party.
Buyer is vendee and holds equitable title the seller is vendor and holds :
Legal title
A contingency clause:
are statements that a party will not be responsible for completing the purchase under certain conditions.
Two forms of evictions are:
Actual and Constructive
( actual is what a landlord will use and constructive is what a tenant may claim if the landlord is in default.
Upon acceptance and communication of acceptance, the offer is now considered to be:
a. counteroffer
b. unilateral
c. a contract
d. valid
a. a contract
