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Ch. 9
Vocab: Real Estate Contracts
Term | Definition |
---|---|
Accord & Satisfaction | A new agreement by contracting parties that is satisfied by full performance, thereby terminating a prior contract. |
Assignment | A complete transfer of all legal rights and obligations by one party to another. |
Bilateral Contract | An agreement based on mutual promises of specified consideration. |
Breach of Contract | Failure without legal excuse to perform a promise that forms the whole or part of a contract. |
Consideration | Anything of value as recognized by law offered as an inducement to contract such as money, action, or forbearance, or a promise to act or a promise to forbear. |
Contractual Capacity | Having the ability to understand the terms of a contract and the consequences of non-performance. |
Counteroffer | A promise or a request by an offeree that terminates the original offer from an offeror by rejecting it and substituting a new offer in its place. |
Damages | The amount of financial loss as a result of the action of another. |
Duress | The inability of a party to exercise his or her free will because of fear of another party. |
Executed Contract | An agreement that has been fully performed. |
Express Contract | One created verbally or in writing by the parties. |
Full Performance | The usual manner of terminating contracts. |
Illusory Offer | One that does not obligate the offeror. An offer that can be read/interpreted in different ways (doesn't exist, probably voids the contract) |
Implied Contract | One created by deduction from the conduct of the parties rather than from the direct words of the parties. Opposite of an express contract. |
Mutual Assent | The voluntary agreement of all parties to a contract as evidenced by an offer and acceptance. |
Novation | The substitution of a new contract for a prior contract. |
Offeror | One making the offer. |
Offeree | One to whom an offer is made |
Parol Evidence Rule | Rule of evidence and law that states the written words contain all of the agreement and that oral statements not agreeing with the written word are to be disregarded. |
Statute of Frauds | A law in effect in all states requiring certain contracts to be in writing to be valid. |
Unilateral Contract | An agreement wherein one party makes a promise of compensation to the other party and the second party returns an action in response to the promise, although he is not legally obligated to do so. |
Valid Contract | An agreement that is legally binding and enforceable. |
Void Contract | An agreement that is absolutely unenforceable and has no legal force or effect. |
Voidable Contract | One which appears valid, but may be avoided by 1 of the parties w/o legal consequences b/c it contains a defect. If party who may avoid contract based on defect, doesn't identify defect & takes action to avoid contract, contract is valid & enforceable. |