(COURSE 1) SECTION 8: GENERAL CONTRACT LAW IN CA
OFFERS THE BUYER THE, BUT NOT THE OBLIGATION, TO BUY AT AN AGREED-UPON PRICE DURING A CERTAIN PERIOD OF TIME OR ON A SPECIFIC DATE
OPTION
AN AREA WHERE THE PARTIES CAN INCLUDE SPECIFIC TERMS NOT INCLUDED IN THE PRE-PRINTED CONTRACT FORM
OTHER PROVISIONS
A MUTUAL CONTRACT THAT INVOLVES AN EXCHANGE OF PROMISES OR OTHER CONSIDERATIONS BETWEEN TWO PARTIES
BILATERAL CONTRACT
THE LEGAL AGREEMENT BETWEEN A BUYER AND A BROKER HIRED TO REPRESENT THE BUYER'S INTEREST
BUYER REPRESENTATION AGREEMENT
IN CALIFORNIA, HOW LONG DO YOU HAVE TO BRING ACTION BASED ON LIBEL, SLANDER, INJURY/DEATH, OR PAYMENT OF A FORGED CHECK
1 YEAR
TO MEET THAT STATUTE'S REQUIREMENTS, THE WRITTEN AGREEMENT MUST: 1. 2. 3.
1. IDENTIFY THE CONTRACTING PARTIES 2. CLEARLY IDENTIFY THE SUBJECT MATTER OF THE CONTRACT 3. PRESENT THE ESSENTIAL TERMS AND CONDITIONS OF THE CONTRACT
WHAT ARE THE 5 ELEMENTS REQUIRED FOR A VALID CONTRACT?
1. LEGALLY COMPETENT PARTIES 2. OFFER AND ACCEPTANCE 3. CONSENT 4. LEGAL PURPOSE 5. CONSIDERATION
THE WRONGED PARTY IN A BREACH OF CONTRACT SITUATION CAN DO WHAT 3 THINGS?
1. TERMINATE 2. ACCEPT 3. SUE
WHEN A CONTRACT FALLS TO PIECES, WHAT ARE THE 2 OPTIONS TO REFORM
1. THE PARTIES MUTUALLY AGREE TO DO SO BY CREATING AND SIGNING A NEW CONTRACT 2. ONE PARTY CAN COMPEL THE OTHER PARTY TO COMPLY THROUGH A LAWSUIT
IN CALIFORNIA, HOW LONG DO YOU HAVE TO BRING ACTION AFTER BEING AWARDED A COURT JUDGMENT
10 YEARS
IN CALIFORNIA, HOW LONG DO YOU HAVE TO BRING ACTION BASED ON AN ORAL AGREEMENT (EX: LEASE THAT IS SHORTER THAN ONE YEAR)
2 YEARS
IN CALIFORNIA, HOW LONG DO YOU HAVE TO BRING ACTION BASED ON THE DISCOVERY OF FRAUD
3 YEARS
IN CALIFORNIA, HOW LONG DO YOU HAVE TO BRING ACTION BASED ON A WRITTEN INSTRUMENT (EX: A REAL ESTATE CONTRACT)
4 YEARS
IN CALIFORNIA, HOW LONG DO YOU HAVE TO RECOVER TITLE TO REAL PROPERTY?
5 YEARS
A PROMISE TO BE BOUND BY THE EXACT TERMS MADE IN THE OFFER
AN ACCEPTANCE
A PROMISE MADE BY ONE PARTY, REQUESTING SOMETHING IN EXCHANGE FOR THAT PROMISE
AN OFFER
WHAT IS IT CALLED WHEN ONE PARTY TO A CONTRACT TRANSFERS THE CONTRACTUAL RIGHTS AND OBLIGATIONS TO ANOTHER BUT REMAINS LIABLE FOR THE CONTRACT TERMS?
ASSIGNMENT
TO SUBSTITUTE A NEW PARTY FOR ONE OF THE ORIGINAL PARTIES STATED IN THE CONTRACT
ASSIGNMENT OF CONTRACT
ALEX, A HIGH SCHOOL FRESHMAN, STARTED A NEIGHBORHOOD LAWN CARE BUSINESS. SIMONE DECIDES TO HIRE ALEX TO MOW HER LAWN EVERY TWO WEEKS. ALEX PRESENTS SIMONE WITH A WRITTEN CONTRACT OUTLINING THE SERVICES TO BE PROVIDED AND THE FEE SIMONE WILL PAY. WHICH OF THE FOLLOWING IS TRUE IN THIS SITUATION?
BECAUSE A MINOR CANT ENTER INTO A CONTRACT, THIS CONTRACT IS TECHNICALLY INVALID, VOIDABLE, AND UNENFORCEABLE IF BOTH PARTIES ARE CONTENT TO UPHOLD THEIR AGREEMENT, THE FACT THAT IT'S NOT LEGALLY BIDNIND DOESNT MATTER.
AN AGENT'S COMPENSATION FOR PERFORMING THE DUTIES OF THE AGENCY; USUALLY A PERCENTAGE OF THE SELLING PRICE OF PROPERTY
COMMISSION
AN ESSENTIAL ELEMENT OF A CONTRACT MEANING IT MUST BE ENTERED INTO AS A FREE AND VOLUNTARY ACT, WITHOUT UNDUE INFLUENCE OR DURESS
CONSENT
THE GIVING OF SOMETHING OF VALUE, WHICH CAN INCLUDE THE AGREEMENT TO NOT DO SOMETHING. CONSIDERATION IS A REQUIRED ELEMENT OF A BINDING CONTRACT
CONSIDERATION
WHAT CONTRACT PROVISION AN ITEM OF VALUE USED TO SHOW GOOD FAITH AND INTENT
CONSIDERATION
LEGAL WRITTEN AGREEMENT BETWEEN BUYER AND SELLER THAT STATES THE PURCHASE PRICE AND OTHER TERMS FOR TRANSFER OF PROPERTY
CONTRACT FOR SALE
THE PARTIES AGREE TO TERMINATE BEFORE THE CONTRACT IS FULLY EXECUTED
CONTRACT RELEASE
THE STATUTE OF FRAUDS DEALS SPECIFICALLY WITH ____
CONTRACTS
WHAT CONTRACT PROVISION SETS A DEADLINE AND LOCATION FOR THE PARTIES TO COMPLETE THIER CONTRACTUAL OBLIGATIONS AND SETTLE THE TRANSACTION
DATE AND PLACE OF CLOSING
WHAT CONTRACT PROVISION SETS THE TIMELINE BENCHMARK FOR ALL CONTRACTUAL DEADLINES
DATE OF THE AGREEMENT
MEANS THAT BOTH PARTIES HAVE COPIES OF THE SIGNED CONTRACTS
DELIVERY
RECEIPT FOR EARNEST MONEY GIVEN BY BUYER TO SECURE AN OFFER
DEPOSIT RECEIPT
WHAT CONTRACT PROVISION IDENTIFIES THE REAL PROPERTY BEING TRANSFERRED
DESCRIPTION OF THE PROPERTY
_____ APPLIES TO PROPERTY THAT IS DESTROYED, DAMAGED, OR TAKEN BY EMINENT DOMAIN
EMINENT DOMAINTHE UNIFORM VENDOR AND PURCHASER ACT
A CONTRACT THAT WILL STAND UP IN COURT
ENFORCEABLE CONTRACT
A CONTRACT IN WHICH ALL THE PARTIES HAVE MET ALL TERMS OF THE CONTRACT
EXECUTED CONTRACT
A CONTRACT IN PROGRESS; ONE OR MORE TERMS OF THE CONTRACT REMAIN UNDONE
EXECUTORY CONTRACT
A STATED (WRITTEN OR ORAL) AGREEMENT BETWEEN TWO PARTIES TO SPECIFIC TERMS
EXPRESS CONTRACT
LOSS OF MONEY OR ANYTHING OF VALUE, DUE TO FAILURE TO PERFORM
FORFEITURE
CONTRACTS ORDER OF PRIORITY
HANDWRITTEN TYPED PRE-PRINTED
A CONTRACT IS NOT VALID IF IT IS WRITTEN FOR A _______ PURPOSE
ILLEGAL
A CONTRACT THAT IS BASED ON THE ACTIONS OR BEHAVIORS OF THE PARTIES, NOT ON WORDS
IMPLIED CONTRACT
A CONTRACT IN WHICH ONE OR MORE OF THE ESSENTIAL ELEMENTS IS MISSING IS ___
INVALID
WHAT IS REQUIRED FOR CONTRACT VALIDITY ONLY WHEN THE NATURE OF THE CONTRACT IS REAL PROPERTY?
IT MUST BE IN WRITING
THE IDEA THAT A CONTRACT MUST NOT PROPOSE TO DO ANYTHING ILLEGAL; SUCH A CONTRACT WOULD BE UNENFORCEABLE
LEGAL PURPOSE
THE RESIDENTS OF BLAIR AVENUE ARE A CLOSE-KNIT BUNCH. THEY'RE ALL YOUNG COUPLES WITH SMALL CHILDREN, AND THEY DON'T WANT THIS DYNAMIC TO CHANGE WHEN TWO OF THE COUPLES HAVE TO MOVE. THOSE COUPLES SIGN AN AGREEMENT PROMISING NOT TO SELL TO ANYONE WITHOUT KIDS OR TO ANYONE OVER THE AGE OF 50. THE CONTRACT CAN'T BE ENFORCED BECAUSE IT'S MISSING ______.
LEGAL PURPOSE
A PARTY WHO HAS THE CAPACITY (LEGAL AND MENTAL) TO ENTER IN TO A CONTRACT
LEGALLY COMPETENT PARTY
REFERS TO AN AGREEMENT BY THE BUYER TO PAY THE SELLER A SPECIFIED AMOUNT OF DAMAGES IF THE BUYER BREACHES THE CONTRACT.
LIQUIDATED DAMAGES EX: EARNEST MONEY DEPOSIT
A CONTRACT BETWEEN A CLIENT AND AGENT TO SELL REAL PROPERTY
LISTING AGREEMENT
WHAT CONTRACT PROVISION IDENTIFIES HOW THE PROPERTY WILL BE FINANCED AND ANY FINANCING CONTINGENCIES
MORTGAGE TERMS AND DEFINITIONS
WHAT CONTRACT PROVISION IDENTIFIES WHOS CONTRACTUALLY OBLIGATED
NAMES AND ADDRESSES
MEANS THAT ALL PARTIES ARE AWARE OF THE TERMS OF THE CONTRACT
NOTICE
WHEN THE OFFEREE ACCEPTS THE EXACT TERMS OF THE OFFEROR AND NOTIFIES THE OFFEROR OF THAT ACCEPTANCE. THIS IS CALLED ______ AND ____
NOTICE AND DELIVERY
WHAT'S THE KEY DIFFERENCE BETWEEN ASSIGNMENT AND NOVATION OF A CONTRACT?
NOVATION RELEASES THE ORIGINAL PARTY FROM ALL OBLIGATIONS, WHILE ASSIGNMENT DOES NOT
AN AGREEMENT BETWEEN THE PARTIES; A MEETING OF THE MINDS
OFFER ANDD ACCEPTANCE
A FULLY EXECUTED, VALID WRITTEN CONTRACT TRUMPS ALL PRIOR NEGOTIATION. THIS IS THE _____________
PAROL EVIDENCE RULE
_____ MEANS TO MEET ALL OF THE CONTRACT'S TERMS
PERFORMANCE OF A CONTRACT
BOBBY HAS JUST FOUND OUT THAT HE WAS NAMED AS THE EXECUTOR OF HIS GRANDFATHER'S WILL. IN ACCORDANCE WITH THE TERMS OF THE CONTRACT, HE MAY SELL HIS GRANDFATHER'S PROPERTY WHILE SERVING AS A ______.
PERSONAL REPRESENTATIVE
A LEGAL SECTION IN A CONTRACT OR LAW
PROVISIONS
A DEFINITIVE END OF THE PARTIES' COMMITTMENTS UNDER AN AGREEMENT USUALLY DUE TO BREACH OF CONTRACT- ONE IN WHICH THE PARTIES ARE RETURNED TO THEIR PRE-CONTRACT STATUS, WHICH IN LEGAL TERMS IS CALLED STATUS QUO ANTE.
RECISSION (LIKE AN ANNULMENT)
REDRAFTING A CONTRACT IS _______
REFORMATION
WHAT IS CONSIDERATION IN REGARD TO A CONTRACT?
SOMETHING OF VALUE IS GIVEN IN EXCHANGE FOR SOMETHING OF VALUE
REQUIRES THE PARTIES TO MAKE GOOD ON THE PROMISES THEY MADE
SPECIFIC PERFORMANCE
TOM AND JIM ARE NEIGHBORS. JIM WANTS TO BUY TOM'S RENTAL PROPERTY. IN THE CONTRACT THEY SIGN, JIM IS IDENTIFIED ONLY AS "THE NEIGHBOR." WHICH STATUTE OR CONTRACT ELEMENT DOES THIS VIOLATE?
STATUTE OF FRAUDS
A FORMAL OFFER
TENDER
IF A BUYER HAS TAKEN POSSESSION OF A PROPERTY, BUT THE SELLER STILL HOLDS THE TITLE, WHO ASSUMES THE RISK?
THE BUYER IS STILL OBLIGATED TO ASSUME THE RISK, EVEN WITHOUT THE TITLE BECAUSE THEY HVE TAKEN POSSESSION
PROVIDES THAT IN MOST CASES, A WRITTEN AGREEMENT IS THE FINAL AND COMPREHENSIVE EXPRESSION OF THE PARTIES' AGREEMENT, AND GENERALLY PROHIBITS THE INTRODUCTION OF PREVIOS VERBAL OR WRITTEN STATEMENTS THAT CONTRADICT, AUGMENT, OR OTHERWISE CHANGE THE WRITTEN CONTRACT TERMS
THE PAROL EVIDENCE RULE
A LAW REQUIRING CONTRACTS CONVEYING OWNERSHIP IN REAL PROPERTY TO BE IN WRITING TO BE ENFORCEABLE
THE STATUTE OF FRAUDS
WHAT DOES THE PAROL EVIDENCE RULE SAY ABOUT CONTRACTS?
THE TERMS AGREED TO IN A WRITTEN CONTRACT ARE THE ONLY TERMS RELATING TO THAT CONTRACT
MOST REAL ESTATE CONTRACTS CONTAIN THE PHRASE "_______" TO PREVENT UNNECESSARY DELAYS TO THE PROCESS WHICH MAY HARM THE PARTIES
TIME IS OF THE ESSENCE
TRUE OR FALSE: THE ONLY PEOPLE/EMTITIES THAT ARE NOT CAPABLE OF ENTERING INTO A REAL ESTATE CONTRACT ARE MINORS AND MENTALLY INCOMPETENT PARTIES
TRUE
TRUE OR FALSE: NOVATION IS WHEN THE RIGHTS AND OBLIGATIONS OF AN ORIGINAL PARTY TO AN EXISTING CONTRACT ARE TAKEN BY ANOTHER PARTY, CREATING A NEW CONTRACT.
TRUE: NOVATION=SUBSTITUTION
TRUE OR FALSE: A GUILTY PARTY DOES NOT HAVE THE RIGHT TO TERMINATE A BREACHED CONTRACT
TRUE: THE GUILTY PARTY WOULD NEED THE AGGRIEVED PARTY'S PERMISSION OR THE AGGRIEVED (INNOCENT) PARTY MAY DECIDED ON THEIR OWN TO TERMINATE.
A CONTRACT THAT WILL NOT HOLD UP IN COURT
UNENFORCEABLE CONTRACT
A CONTRACT IN WHICH CONSIDERATION (SUCH AS A PROMISE) IS ONLY GIVEN BY ONE PARTY TO THE OTHER
UNILATERAL CONTRACT
A CONTRACT THAT CONTAINS ALL THE ESSENTIAL ELEMENTS IS ___
VALID
A CONTRACT FOR AN ILLEGAL PURPOSE IS ____
VOID
A CONTRACT WITH NO LEGAL FORCE OR EFFECT, WHICH MEANS THE PARTIES ARE NOT BOUND BY IT
VOID
A CONTRACT THAT MAY BE CANCELLED BY ONE OR MORE PARTIES FOR ONE OF SEVERAL REASONS. IT MAY BE MISSING AN ESSENTIAL ELEMENT AND THUS INVALID. IT MAY CONTAIN A MISTAKE OR MISREPRESENTATION. IT MAY HAVE BEEN CREATED OR EXECUTED BY A PARTY UNDER DURESS
VOIDABLE
A ___ CONTRACT APPEARS VALID, BUT ONE OR BOTH PARTIES HAVE THE RIGHT TO RESCIND THE CONTRACT.
VOIDABLE
SYLVIA, WHO'S 15 YEARS OLD, AND HER NEIGHBOR MARGE, WHO'S 24, SIGN AN AGREEMENT THAT SYLVIA WILL BABYSIT MARGE'S TODDLER FOR THE SUMMER FOR $10 AN HOUR. WHAT TYPE OF CONTRACT IS THIS?
VOIDABLE: IT APPEARS TO BE VALID, BUT ONE OF THE PARTIES HAVE THE RIGHT TO RESCIND THE CONTRACT. IN THIS CASE, SYLVIA CAN ENFORCE THE CONTRACT, BUT MARGE CANNOT ENFORCE AGAINST SYLVIA BECAUSE SYLVIA IS A MINOR
ROBERT AND SARAH ENTER INTO A CONTRACT FOR SARAH TO PURCHASE ROBERT'S HOME. ROBERT DECIDES HE DOESN'T WANT TO SELL, AND IS ELATED WHEN HE FINDS OUT THAT SARAH'S ONLY 17 YEARS OLD. CAN SARAH FORCE ROBERT TO SELL?
YES, SARAH CAN REQUIRE THAT ROBERT FULFILL THE CONTRACT TERMS BECAUSE HE IS OVER 18. BUT ROBERT CANT REQUIRE SARAH TO FULFILL THE CONTRACT