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59 Cards in this Set
- Front
- Back
- 3rd side (hint)
express contract
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two parties declare their intentions either orally or in writing |
how a contract is created
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implied contract
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two parties actions indicate that they intend to create a contract.
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how a contract is created
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bilateral contract
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results when a promise is exchanged for a promise. |
how a contract is created
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what wording is used in a bilateral contract
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I will do this and you will do that.
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how a contract is created
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unilateral contract
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results when a promise is exchanged for a performance |
how a contract is created
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Is an option to purchase a unilateral contract or bilateral contract?
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unilateral contract
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how a contract is created
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what is an open to purchase a unilateral contract?
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it is an offer by the optionor to sell his property in the future in return for an option fee. |
how a contract is created
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at the time the option is exercised( and the optionee has the obligation to close) it becomes what kind of contract?
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a bilateral contract for sale
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how a contract is created
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what will the wording say in a unilateral contract
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I will do this if you will do that
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how a contract is created
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forbearance/ forbear
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not to act
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how a contract is created
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what is an example of a forbear?
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a lender may agree not to foreclosure on a delinquent mortgage loan if the borrower agrees to a new payment schedule. |
how a contract is created
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valid contract
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is one that meets all requirements by law; an enforceable contract.
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how a contract is created
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void contract
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has no legal effects and in fact is not a contract at all. Example if the contract was not signed by the correct person. |
how a contract is created
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unenforceable contract
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one neither party can sue the other to force performance.
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how a contract is created
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the enforcement is now barred by what?
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statute of limitations or the doctrine of laches (unreasonable delay)
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how a contract is created
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the 5 essentials of a valid contract requirements must be met
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legally competent parties; Mutual agreement; lawful objective; consideration; contract in writing when required by law
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essentials of a valid contract
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legally competent parties
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they must legal competent; the most objective standard is age
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essentials of a valid contract
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Mutual agreement
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there must be a mutual willingness to enter into a contract.
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essentials of a valid contract
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lawful objective
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contracts can not call for breaking of the law
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essentials of a valid contract
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consideration
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is usually something of value, such as a promise to do something, money, property, or personal service.
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essentials of a valid contract
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contract in writing when required by law
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statute of frauds
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essentials of a valid contract
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contract with a minor is?
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void
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essentials of a valid contract
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mutual agreement is also called
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mutual consent, mutual assent meeting of the minds |
essentials of a valid contract
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the purpose of requiring consideration is to
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demonstrate that a bargain has been struck between the parties on the contract |
essentials of a valid contract
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mortgages and trust deed are enforced by
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bonds and notes |
essentials of a valid contract
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a individual can give another person the power to act on their behalf. the person holding the power of attorney is call the attorney in fact
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power of attorney
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essentials of a valid contract
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what is done with the power of attorney for it to be valid?
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it must be acknowledged by the principal and recorded.
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essentials of a valid contract
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offeror
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making the offer(giving an offer) ; the rolls are reversed with a counteroffer
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essentials of a valid contract
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offeree
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the one receiving the offer; the rolls are reversed with a counteroffer
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essentials of a valid contract
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the means of communication in a offer and acceptance can be how?
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spoken, written, an action the implies acceptance |
essentials of a valid contract
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there are three options to a counteroffer
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reject it, agree to it, or make a counteroffer
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essentials of a valid contract
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it is considered reject not only by saying you reject it but by what?
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if any changes are made in the terms; this is now considered a counteroffer
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essentials of a valid contract
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when can you reject your first offer
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any time before acceptance; this is strongly advices against
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essentials of a valid contract
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if you do not have a mutual agreement in writing the tenant can
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rescind (cancel) and get the rent money back
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essentials of a valid contract
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this is used in contract law and arises from ambiguity in negotiation and mistake of material facets
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mistake
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essentials of a valid contract
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mistake does not include
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innocent misrepresentation, ignorance, inability, or poor judgment |
essentials of a valid contract
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what three things cannot be used to obtain a contract?
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duress menace (use of force) (threat of valance) undue influence (unfair advantage) |
essentials of a valid contract
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what are the 3 meaning of consideration?
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valid contract, money, acknowledgment
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essentials of a valid contract
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parol evidence rule (can be used in certain circumstances)
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permit oral evidence to complete an otherwise incomplete or ambiguous (open to more than one interpretation) written contract
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essentials of a valid contract
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executor
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in the process of being performed |
essentials of a valid contract
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executed
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already performed or performance has taken place
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essentials of a valid contract
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execute
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the process of completing, performing, or carrying out something.
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essentials of a valid contract
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novation
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is the substitution of a new contract between the same or new parties
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performance and discharge of contract
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uniform vendor and purchase risk act
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neither possession nor title has passed and there is material destruction to the property.
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performance and discharge of contract
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in a breach of contract the wronged or innocent party has six alternatives.
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1. accept partial performances, 2. rescind the contact unilaterally 3. sue for money 4. sue for specific performance 5. accept liquidated damages 6. mutually rescind the contract.
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1. accept partial performances
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when there is not a great deal at stake (they feel the time it will take to sue is not worth the money they will get.)
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2. rescind the contact unilaterally
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the position that if the other person is not going to perform then the innocent party will not either.
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3. sue for money
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getting money for damages; they can also recover interest from the day of the lose to the day of reimbursement
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4. sue for specific performance
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the breaching party must carry out the remainder of the contract according to all its terms, price, condition agreed upon
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5. accept liquidated damages(earnest money)
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amount of money specified in a contract as compensation to be paid if the contract is not satisfactorily completed.
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6. mutually rescind the contract.
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relive both parties of the contract
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caveat emptor
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let the buyer beware before buying
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a contract binding on one party but not the other is
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voidable contract |
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when an offer makes a valid offer and communicates it to the offeree
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the offeree, may reject the offer, accept the offer, make a counteroffer
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a offer nay be terminated by
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withdrawal of the offer, refusal of the offer, lapse of time |
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if a contract is a joke; it is not valid why
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it lacks contractual intent, mutual agreement
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legal action to force the breaching party to carry out the remainder of a contract is called a suit for
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specific performance
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voidable
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it maybe rescinded by one or both parties. |
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In an option contract, who is bound to the option. |
the seller is bound, That is, the optionee doesn’t have to exercise the option and doesn’t have to buy, but the seller must keep the offer open. |
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