Business Law /Real Estate Notes: National Part
Real Estate Notes: National Part
This deck covers essential concepts and terms related to real estate contracts, including contract validity, legal terms, and common clauses.
What is required for certain types of contracts, such as for a property ownership transfer, to be legally enforceable?
The statute of frauds
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Key Terms
Term
Definition
What is required for certain types of contracts, such as for a property ownership transfer, to be legally enforceable?
The statute of frauds
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What are the 5 characteristics that make a contract valid?
Offer and acceptance
Consideration
Legally competent parties
Legal purpose
Made voluntarily
What occurs when the parties enter into an agreement voluntarily with full understanding of contract terms?
Offer and acceptance
What is something of legal value offered by one party and accepted by another?
Consideration
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Who are those who have the legal and mental capacity to enter into a contract?
Legally competent parties
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What does it mean when a contract results in a legal outcome?
Legal purpose
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| Term | Definition |
|---|---|
What is required for certain types of contracts, such as for a property ownership transfer, to be legally enforceable? | The statute of frauds |
What are the 5 characteristics that make a contract valid? | Offer and acceptance Consideration Legally competent parties Legal purpose Made voluntarily |
What occurs when the parties enter into an agreement voluntarily with full understanding of contract terms? | Offer and acceptance |
What is something of legal value offered by one party and accepted by another? | Consideration |
Who are those who have the legal and mental capacity to enter into a contract? | Legally competent parties |
What does it mean when a contract results in a legal outcome? | Legal purpose |
What does it mean when the parties entered into the agreement voluntarily? | A voluntary contract or made voluntary |
What does it mean when one part or section of a contract is unenforceable, while the rest of the contract is enforceable? | Severability |
What happens when one party of the contract decides to terminate it? | Unilateral rescission |
What is seeking monetary compensation to make up for any harm caused? | Sue for damages |
What seeks to force a party to make good on the promises made in some way? | Specific performance |
What limits buyer damages to a return of the earnest money if the seller breaches the contract? | Liquidated damages |
What does it mean when all of the contract obligations have been met? | Contract discharge |
What generally means that one of the parties ends the contract before it’s fully performed? | Contract termination |
What generally results from an operation of law, such as breach of contract, destruction of the object of the contract, etc.? | Contract rescission (cancellation) |
What does it mean to transfer contractual rights or duties to a new party, with the original party usually liable if the new party does not meet the contract obligations? | Assignment |
What occurs when one contract or party(ies) is substituted for another? | Novation |
What does UETA stand for? | Uniform Electronic Transactions Act |
What does it mean when both parties faithfully agree to perform responsibilities within the time limits of the contract? | “Time is of the essence” |
What specifies that any dispute arising under the contract shall be determined in accordance with the law in a particular jurisdiction? | Choice of law |
What means one or both parties commit to compensate the other for any harm, liability, or loss arising out of the contract? | Indemnification |
What defines a condition or action that a party must meet in order to not be in breach of contract? | Contingency clauses |
What is an addition to an existing document, such as an offer to purchase, adding terms not addressed in the main body of the contract form? | Addendum |
What is a change to an existing contract between parties, changing one or more of the original contract terms? | Amendment |
When does a contract become binding? | Once it is signed |
If there is not a specific date in the contract, when should it be done? | Within 'reasonable time'. Usually courts favor the buyers |
What is an offer that states, 'I will pay x price for this home, but if the seller receives another offer that's higher than mine, I'm willing to increase my offer to y price.'? | An escalator offer |
Should licensees present all offers even after an offer has been accepted? | Yes, all of them need to be presented |
Which contingency is the riskiest of them all? | Home sale contingency |
Who usually decides how much is for the earnest money? | Usually, the buyer |
What occurs when all parties have signed a given contract? | Acceptance |
What occurs when the accepted offer is delivered? | Binding acceptance |
What is a contractual shift of liability and obligations off of a given party? | Indemnification clause |
What states the time frame in which a party can file a lawsuit relative to the contract? | The statute of limitations |
What specifies that any contract disputes will be settled through this means, rather than through the court system? | Arbitration Clause |
What’s the role of the mortgage contingency in a sales contract? | Document the type of and timeline for financing, and outlines what to do if financing falls through. |