SECTION 14 - ?

Bill and Mindy, who are neighbors, get into a disagreement about late-night noise. The two come to an agreement: Bill promises to stop having loud parties and Mindy promises to keep her dogs inside after 10 p.m. Their promises represent the ______ in their agreement. A. Consideration B. Flaw C. Legal competency D. Undue influence

A

Specifies that contract disputes will be settled through arbitration rather than through a lawsuit. =

ARBITRATION

When a new party to a contract agrees to satisfy the former party's obligations. Unless there is a novation (a new contract) the original parties remain liable for the contract terms.

ASSIGNMENT

A legally competent party means that an individual has the capacity, legally and ______, to enter into a contract. A. Financially B. Mentally C. Morally D. Purposefully

B

In a contract, consideration is the giving of ______. A. Notice to attorneys that they may review the terms of the agreement B. Something of value in exchange for something of value C. Something of value in exchange for something without value D. Thoughtfulness and courtesy to all parties

B

When offer and acceptance has occurred, both parties enter into ______. A. A contingency B. A mutual agreement C. Consideration D. Understanding

B

In a purchase offer, is earnest money required in order to have a binding contract? A. No, because earnest money isn't part of a sales contract. B. No, because the buyer's consideration is the promise to buy. C. Yes, because it opens escrow. D. Yes, because it's the buyer's consideration.

B?

A mutual contract that involves an exchange of promises or other consideration between two parties =

BILATERAL

One or more parties fail to meet the terms of their agreement

BREACH OF CONTRACT

The giving of something of value, which can include the agreement to not do something. ____________ is a required element of a binding contract.

Consideration

In the eyes of the law, why do people under age 18 lack contractual ability? A. They have insufficient resources. B. They lack intelligence. C. They're immature. D. They're minors.

D

Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? A. Executed B. Illegal C. Void D. Voidable

D

Which of the following describes a contract that exists based not on words, but on the parties' actions or behaviors? A. Executed B. Executory C. Express D. Implied

D

A contract that will stand up in court =

ENFORCEABLE

A contract in which all the parties have met all terms of the contract =

EXECUTED

A contract in progress; one or more terms of the contract remain undone =

EXECUTORY

A stated (written or oral) agreement between two parties to specific terms =

EXPRESS

A contract that is based on the actions or behaviors of the parties, not on words =

IMPLIED

Releases one or more parties from liability or loss. =

INDEMNIFICATION

A contract in which one or more of the essential elements is missing =

INVALID

The idea that a contract must not propose to do anything illegal; such a contract would be unenforceable =

LEGAL PURPOSE

Allows the aggrieved party to collect reasonable damages, even if damages are hard to calculate. =

LIQUIDATED DAMAGES

Describes how contract-related notice may be made and when notice is considered to have been received. For example, a purchase or listing contract may permit contract parties to select whether notices may be delivered electronically. =

NOTICES

Kirk and his cousin Dewey decided to buy a vacation home. They entered into a contract with the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he didn't want to let his cousin down. So instead of pulling out altogether, Dewey convinced his son to replace him in the purchase contract. Kirk and Crystal agreed to the substitution, and Dewey was released from all his obligations under the contract. Dewey's son is now the contracting party. What's this an example of?

NOVATION

The substitution of a new contract for a prior contract, or a new party for an old party

NOVATION

Meeting some, but not all terms of a contract

PARTIAL PERFORMANCE

The discharging (ending) of a contract through the full completion of all terms =

PERFORMANCE

Notifies the parties that even if one part of the contract is found invalid, the other parts of the contract can be valid and enforceable. =

SEVERABILITY

Adopted by all states, the statute of frauds is a legal concept that all contracts involving the creation or conveyance of an interest in real property must be in writing to be enforceable

STATUTE OF FRAUDS

States the timeframe in which a party can file a lawsuit relative to the contract. =

STATUTE OF LIMITATIONS

A legal phrase that means that the parties agree that the deadlines set are vital to the contract, and that no one will unduly delay their completion

TIME IS OF THE ESSENCE

Specifies the date by which performance of the contract needs to be completed. =

TIME OF PERFORMANCE

Gives electronic signatures and documents the same legal weight as paper writings and signatures

UETA

A contract that will not hold up in court =

UNENFORCEABLE

A contract in which consideration (such as a promise) is only given by one party to the other =

UNILATERAL

A contract that contains all the essential elements =

VALID

A contract with no legal force or effect (to do something illegal, for example), 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 a misrepresentation, or it may have been created or executed by a party under duress =

VOIDABLE

An ____________ is a promise to be bound by the exact terms made in the offer.

acceptance

Which of the following elements is always required for a real estate contract to be valid? A. Attorney review B. Consideration C. Earnest money D. Profit

b

Due to circumstances out of their control, the parties cannot legally or practically do what they've agreed to do. =

impossibility of performance

Damages agreed to be paid in a contract =

liquidated damages

The offer is said to be a contract when the offeree accepts the exact terms of the offeror and notifies the offeror of that acceptance. This is called __________ & ____________.

notice, delivery

An _________ is a promise made by one party, requesting something in exchange for that promise.

offer

To take back, remove or annul =

recission

An order by the court that the parties must complete the contract as originally agreed =

specific performance

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract? A. Both parties B. The broker C. The party lacking legal capacity D. The party possessing legal capacity

C

Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business deal. What kind of contract do Rex and Ben have? A. Executed B. Executory C. Void D. Voidable

C

Points out that the contract will be interpreted under the laws of the given jurisdiction. =

CHOICE OF LAW