RE Contracts Word Scramble
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Question | Answer | Additional |
Legal capacity | The law makes people responsible for contracts they enter into to be bound by them in their promises | Unaccountables: minors and mental incompetents |
Agent | Person who is authorized by principal to perform acts or sign contracts. | |
Power of Attorney | Written document authorizing another to act as one's agent. | |
Agent-in-fact | An agent appointed by a principal by a written power of attorney. | |
Meeting of the minds | Both parties agree on same promises in a contract is enforceable. | |
Lawful purpose | Contract must be for a lawful purpose to be enforceable. | |
Statutes of Fraud | Requires for certain categories of contracts to be in writing. | Categories: 1. payment of debt of another 2. consideration of marriage 3. purchase of land 4. agreements that can't be performed within a yr. 5. contracts involves a promise to act as a guarantor or surety 6. sale of goods over $500.00 |
Types of Contract Breaches | Partial, Material and Total | |
Partial/immaterial breach | a party's failure to fulfill a contract term | |
Material breach | Party fails to fulfill a duty under the contract, which is significant enough to cause the rest of the contract to fail. | excuses wrong party from further duty |
Total breach | Party entirely fails to fulfill entire contract. | |
Specific Performance | Court orders defaulting party to perform promises per contract. | |
Money Damages | Money awarded for a default under a contract amount depends on contract price, which is compared to fair market value. | |
Rescission | Injured party to be as if contract had never occurred. | Contract is termed and injured party is reimbursed. |
Liquidated Damages | Agreed upon sum for damages as the result of default. | Within a contract, it's is considered the exclusive remedy. |
Injunction | Court order prohibiting party from acting | |
Permanent Injunction | Are issued by a court after hearing a matter, and as a part of the judgment order. | |
Temporary Injunction | Court enforced order prohibition party to act for a brief time period. | TROs are temporary restraining orders that are a type of temp. injunc. |
Preliminary Injunction | Enforceable immediately and lasts until court can fully hear a matter and make a permanent decision on matter. | |
Liquidated Damages | Is a clause in the contract advising that any breach in contract is penalized. Both parties agreed to penalty amount in contract draft as reasonable. | |
Principal | Gives legal authority to another to act on his/her behalf in business transactions. | |
Agency relationship | Principal give legal authority to agent to act on principals behalf when dealing with a 3rd party. | |
Fiduciary | Agency relationship based on trust where legal obligations are involved. | |
Express agreement | Written and oral agreement where principal and agent agree to terms of relationship. | |
Implied agreement | Apparent authority for which 3rd party assumes that the principal granted authority to agent. | |
Obligations | Act on bounds of authority that includes, loyalty, performance, notification obedience and accounting. | |
Marketable Title | Title of which purchaser with full knowledge of all facts would accept. | |
Insurable Title | Title that is insurable, considered by title insurance company as being marketable. | |
Option | Is a contract in which owner of real property/optionor agrees w/ optionee to right to buy real property at fixed price & terms agreed on and binds owner of real property to agreement to sell to optionee buyer. | Is based on valuable considerations and is irrevocable and must be in writing. |
Seller disclosure form | A form produced by seller disclosing conditions of real property. | |
Contract | Agreement by two or more persons consisting of a promise/mutual promises that the law will enforce and recognize as a duty of performance. | 5 Requirements are: legal capacity mutual agreements considerations lawful purpose written agreement |
Created by:
Christine's Stack
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