Real Estate Practice Exam
Terms
undefined, object
copy deck
- A voluntary agreement between legally competent parties to do or not to do some legal act which must by supported by legal consideration and can be enforced by a court is called a
- Contract
- Must be legal age and mentally competent
- Competent Parties
- (mutual assent) must be a "meeting of the minds" - Any offer may be withdrawn at any time prior to acceptance is
- Offer & Acceptance
- Purpose must be Legal
- Legality of Contract
- act or promise therof, which is offered by one party to induce another party to enter into a contract; earnest money is not necessary for purposes of creating a binding contract
- Consideration
- Must by Correct
- Legal Description of Real Estate
- In Writing and signed by party to be charged - required for all real estate contracts (unless less than 1 yr.) is called the
- Statute of Frauds
- parties state terms and show intentions in words - may be either oral or written is what type of contract
- Expressed
- Agreement demostrated by acts or conduct is what type of contract
- Implied
- both parties to do something; exchange of promises (consideration) is what type of contract
-
Bilateral
"Promise exchanged for a Promise" - only one party makes a promise - if second complies - first party is obligated to keep promise - such as an option or open listing - no exchange of promises - its what type of contract
-
Unilateral
"Promise exchanged for Performance" - when both parties have fulfilled their promises and thus performed the contract it is what type of contract
- Executed
- something remains to be done by one or both parties it is what type of contract
- Executory
- Clause wich allows a party to "escape" if certain requirements are not met - such as inablity to get a loan
- Contingency Clause
- complies with all essentials of a contract; binding and enfoceable on both parties it is said to be
- Valid
- lacks an essentail element of a valid contract; has no legal effect it is said to be
- Void
- appears to be valid on its surface but may be disaffirmed b/c one of the parties signed when a minor - or when under duress or as a result of fraud or misrepresentation it is said to be
- Voidable
- appears to be valid; but neither party may sue the other to force performance; ex. an oral agreement to pay a commission - it is said to be
- Unenforcable