Chapter 3 - Introduction to Contracts

Assignment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract.

A valid contract must include which of the following...? Consideration Legal purpose All of the above Offer and acceptance

All of the above

A written listing agreement between a broker and his/her principal is considered what type of contract...? Unilateral contract Bilateral contract Implied contract Void contract

Bilateral Contract

A voidable contract is typically used by a...? Minor Adult Buyer Seller

Minor

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...? Statute of Limitations Statute of Frauds Statute of Contracts Statute of Agency

Statute of Frauds

Voidable

That which is capable of being adjusted void, but is not unless action is taken to make it so.

Void

To have no force or effect; that which is unenforceable.

Unilateral Contract

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.

Statute of Frauds

A State law, based on an Old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g. contracts for the sale of real property, contracts not be performed within one year.

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract.

Bilateral Contract

A contract in which each party promises to do something.

Option

An irrevocable right to buy a property at an agreed upon price.

An agreement that has not been put into words, but is implied by the actions of the parties is considered a/an...? Express contract Implied contract Dual contract Void contract

Implied Contract

Novation

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.

Executory Contract

A contract in which something remains to be done by one or both of the parties.

Executed Contract

A contract that has been fully performed.

Express Contract

A contract that has been put into words, either spoken or written.

Contract

A legally enforceable agreement to do, or not to do something.

Breach of Contract

A violation of the terms or conditions of a contract without a legal excuse.

Implied Contraact

An agreement that has not been put into words, but is implied by the actions of the parties.

Consideration

Anything given or promised by a party to include another to enter into a contract, e.g., personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other.

A contract that has been fully performed is considered a/an...? Closed contract Executed contract Void contract Executory contract

Executed contract

An irrevocable right to buy a property at an agreed upon price is called a/an...? Option Lease Purchase contract Listing contract

Option

A contract that does not have force or effect is considered...? Valid Void Executed Formal

Void

That which is capable of being adjusted void, but is not unless action is taken to make it so is considered...? Express Implied Voidable Executed

Voidable

Which of the following is considered a bilateral contract...? Net listing agreement Exclusive right to sell agreement All of the above Sales contract

All of the above

A legally enforceable agreement to do, or not to do something is called a/an...? Option Deed Contract Statement

Contract

A contract that has been put into words, either spoken or written is considered a/an...? Express contract Implied contract Dual contract Void contract

Express Contract

Valid

Having force, or binding force; legally sufficient and authorized by law.

If a contract requires a party to do something, it is referred to as...? Performance Closing Forbearance Consideration

Performance

Rescission of Contract

The abrogation or annulling of contract; the revocation or repealing of contract by mutual consent by parties to the contract, or for cause by either party to the contract.

A .................. contract exists when one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it? Unilateral Bilateral Executed Void

Unilateral

A contract that is legally sufficient and authorized by law is considered...? Valid Void Unenforceable Formal

Valid