Contract Fundamentals

Liz contracts with Chaz to add a patio to her house paying him $10,000 for material now and promising 8000 for labor when he's done before he delivers the labor he skips town she signed a contract with Mike to do the job but he charges 20,000 less use Chaz for breach of contract and is awarded damages. How much is the court most likely to award her?

$10,000 compensatory damages

Lisa has a contract by Bill's house for $150,000. She made a $6000 earnest money deposit which is specified to be used as liquidated damages if necessary Lisa does not show up at settlement. It takes Bill six months to find another buyer who offers him only $134,000 how much can bill most likely Sue Lisa four in compensatory damages?

$10,000

Gary and Tom have a contract. Gary gives consideration that is comparable in the value to Tom's consideration. This is considered.

adequate consideration

A condition in a purchase contract states the agreement depends on the property, passing a home inspection and radon gas test. This is called a

contingency clause

If the seller change the terms proposed by the buyer in the sales contract, he creates a

counter offer

Paula is selling her house. She changes the terms proposed by the buyer in the sales contract, creating a

counteroffer

How do you sign the listing agreement with Lots-O-Wealth Real Estate company they sell her house and she pays in the promise commission there for all terms of the contract has been met. This contract is now

discharged

Craigs is Randy for a specific performance. Craig is seeking

enforcement of the contract

Which is NOT an essential element for a valid and enforceable contract?

execution

Asian Liliana's client Hannah have just signed an open listing agreement that will pay Lenny a 6.5% commission only if you find a willing and able buyer for her house while he has no specific obligation to do so which option best describes disagreement at this time?

express, unilateral, executory

Agent Lenny and his client Hannah have just signed an open listing agreement that will pay Lenny a 6.5% commission only if you find a willing and able buyer for her house while he has no specific obligation to do so. Which option best describes disagreement at this time?

expressed, unilateral, executory

Melissa went to the dry cleaner and dropped off her good walk out to be cleaned when the clerk accepted the coat Melissa and the dry cleaning operation had just entered into what type of contract?

implied

The time period for enforcement of a contract is established by the statute of

limitations

Tom agrees to buy Gary's house with a contingency that he puts in new kitchen appliances. Tom put down a $5000 earnest money, deposit and Gary and salsa, new kitchen appliances, Tom bags out of the deal. There was a clause in the contract, stating if the buyer breaches the contract for fits the earnest money deposited. This is

liquidated damages

Ken and Joe are out at a bar drinking during the evening. Ken writes a note on a cocktail napkin agreeing to sell his car to Joe for $500 after they sign it can pockets the money and hands the keys over the next day. Ken has no idea where his car is and how he came to have $500 in his wallet. Was this a valid contract?

no, because Ken was incapacitated

Agent Kelly, eager to get her first listing, talks her elderly neighbor, and into signing in agreement that would pay Kelley a 10% commission. If she finds a buyer, Kelley finds a buyer and the seller concludes. Kelley wants her commission, but and family contest saying and diagnosed with dementia was coerced. Is Kelley likely to get her 10% commission?

no, because the listing agreement is voidable by Ann

Mallory signs a piece of paper, promising to clean her mothers house. This is

not a contract

Ned has signed an agreement by Tim's car the day before the title transfer in that cost him and says that he has changed his mind but his sister Faye would like to buy the car on the same terms Tim substitute phase name for Ned's on the agreement. This is an example of

novation

The phrase "meeting of minds" refers to

offer and acceptance

The rule that prevents the admission into court of any prior or simultaneous oral or written agreements that contradictory terms of a written contract is referred to as the

parol evidence rule

Albert is buying Evelyn they sign a contract. He gives her a check for $12,000 and she signs the deed when the check bounces which is not a possible remedy open to eat for Alberts breach of contract?

punitive damages

If upon receipt for an offer to purchase under certain terms, the seller makes a counter offer. The prospective buyer is

released from his original offer

A seller and buyer agree on terms of purchase and sale agreement and are now waiting for closing to occur unfortunately before closing occurs a tree falls on the house, destroying the living room. Which is LEAST LIKELY to be one of the buyers remedies?

require the seller to rebuild

When a court order, someone who has breach of contract to perform as agreed rather than paying damages, it is known as

specific performance

A state law that requires all real estate contracts to be in writing to be enforceable by the courts is the

statue of frauds

Broker Stan, who represents a seller under an exclusive, listing agreement, receives two offers for the sellers property at the same time: one from an agent in his office, and one from an agent affiliated with a cooperating broker. What should Stan do?

submit both offers at the same time allowing the seller to make a decision after looking at all the facts

Tom hires broker Mary to help him find a house agreeing to a 180 day contract after 30 days and 42 houses Mary tells Tom she will not show him any more houses since he's clearly an interested in buying anything. Which is least likely to be an option for Tom?

sue to compel Mary to honor the contract and show him more houses

Kyle is selling off his 200 acre farm neighboring farmer Beth tells Kyle she'd like to buy a 40 acre parcel that abuts her property. They shake hands. This oral contract is most likely

unenforceable

Belinda's toy poodle went missing so she offered her neighbors $500 if he finds and returns her dog. This is an example of

unilateral express contract

Jerry agreed to purchase a used tractor from Tim for $15,000 in later Jerry found out that Tim was going to steal the tractor. This contract is

void

Shirley was under psychiatric care and declared incompetent in March. She signed a purchase contract by Joe's house two months later what was the status of the contract when she signed?

void