Vocabulary Study Cards Ch. 9 Flashcards
Consideration
Anything of value offered as an inducement to contract, such as money, action, or forbearance, under the law.
Express Contract
A contract that is implied from the conduct and actions of the parties.
Bilateral Contract
One that is based on mutual exchange of promises or acts between the parties at the time the contract is signed. A promise in exchange for the promise of another.
Ready, Willing, and Able
A buyer who is ready to buy, willing to buy, and financially able to pay the asking price.
Implied Contract
A contract that is implied from the conduct and actions of the parties.
Unilateral Contract
When one party makes a promise to the other and the second party returns an action in response to the promise.
Executed Contract
A contract that has been fully performed by the parties.
Executory Contracts
All contracts that have not been fully performed because things still need to be done as required by the contract.
Valid Contract
A contract that is binding and enforceable. Means “good and enforceable” as opposed to whether it represents a good deal.
Voidable Contract
Results from failure to meet some legal requirement in negotiating the agreement.
Void Contract
An agreement that is absolutely unenforceable and has no legal force or effect.
Mutual Assent
The voluntarily agreement of all parties to a contract as evidenced by an offer and acceptance.
Offeror
The party making an offer.
Offeree
Party to whom the offer is made.
Illusory Offer
One that does not obligate the offeror.
Counteroffer
A rejection coupled with a new offer.
Earnest Money
Money the buyer deposits with the offer to purchase to show that the buyer is earnest, or sincere, in the intent to purchase the property.
Contractual Capacity
Having the ability to understand the terms of a contract and the consequences of nonperformance.
Negligent Misrepresentation
Occurs as a result of misconception as to the facts on the part of the person making the unintentional misrepresentation.
Duress
The inability of a party to exercise his or her free will because of fear of another party.
Land Contracts
Contracts for deed, installment contracts, and conditional sale contracts.
Accord and Satisfaction
A settlement agreement between the parties, often in the form of some compromise, that annuls and discharges the original agreement.
Novation
The substitution of a new contract for a prior contract.
Full Performance
The usual matter of terminating contracts when all the terms of the contract have been fully performed by all parties, the contract is executed and terminated.
Breach of Contract
Failure, without legal excuse, to perform any promise that forms the whole or part of a contract.
Assignment
The transfer of legal rights and obligations by one party to another.
Parol Evidence Rule
Rule of evidence and law that states the written words contain all of the agreement and that oral statements not agreeing with the written word are to be disregarded.
Compensatory Damages
The injured party is entitled to receive compensation for any financial loss cause by the breach as may be awarded by a court.
Liquidated Damages
The amount of money for damages is agreed upon in the contract.
