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Flashcards in Contract Law Deck (40)
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1

Define bilateral contract:

Promise for a promise

2

A unilateral contract is a:

Promise for a performance

3

4 essential elements of any contract:

1- Mutual Agreement
2- Consideration
3- Capacity/competency
4- Legal purpose

4

According to the Statute of Frauds (which has nothing to do with defining fraud), which of the following contracts do NOT have to be in writing to be enforceable:

a. Purchase of a primary residence for $87,000
b. A lease agreement for 2 years
c. Purchase of a used motorcycle for $895
d. An agreement to hire a gardener for six-months

D

5

T/F If the agent and the seller know the roof leaks, and the buyer never asks about it, they do not have to reveal that information to the buyer.

False

6

Partial Performance

In a contract dispute; all parties agree to just leave things as they are.

7

. In a contract dispute situation, if all parties agree to a "contract to end the contract" (everyone returns to their original position) this is an example of:

Rescission

8

Define Specific Performance

In a contract dispute situation, if one party sues asking the court to make the other do as he/she agreed

9

A money adjustment for actual losses is called _______.

damages

10

"Subject to" clauses in CONTRACTS are also known as:

Contingency

11

“Subject to” clauses in DEEDS are also known as:

Habendum

12

The seller changed the date of closing before signing and returning the offer to the agent. This would constitute an acceptance.

False

13

To sign a contract is to __________ it. The person who signs is called a(n) ________.

Execute, Signatory

14

In an executed contract, all its terms have been:

Performed

15

A contract which is still in process, and is not in default is:

Executory

16

A void contract lacks one or more of the essential elements. It is binding on ____________ of the parties.

None

17

T/F A valid contract contains all essential elements. It is binding on all parties to the contract.

True

18

You know the basement leaks, but say "Oh, no the basement doesn't leak at all." This is an example of:

Positive fraud

19

You did not purposely deceive, but with reasonable care the problem could have been avoided. This is an example of:

Constructive Fraud

20

When they know the basement leaks, but the agent and seller say nothing & the buyer doesn't ask about the basement. This is an example of:

Negative Fraud

21

An offer can be withdrawn at any time up to ____________. There is no acceptance until the acceptance has been ____________ to the offeror.

Acceptance, Communicated

22

A clause providing for a predetermined money settlement for anticipated defaults (such as the earnest money) is called a __________ damages clause

Liquidated

23

All contracts are assignable, without the approval of the other party, except for those involving _________ __________ (which includes Agency), or those that specifically prohibit it (such as a "Due on Sale" clause in a loan).

Personal Services

24

A contract exists between Abel & Baker. Abel substitutes Chan in his place with the approval of Baker, and Abel is released from all liability. This is called ________.

Novation

25

When all dates are firm and must be met, the contract has a time is of the essence clause. Violation of deadlines creates a ________________________ contract.

Voidable

26

Which of the following is a bilateral contract?

a. Option
b. Listing
c. REPC (Real Estate Purchase Contract)

C. REPC

27

T/F. An agent brought the sellers an offer at exactly the price and terms specified
in the listing agreement. The sellers don't want to sell. They still owe a commission.

True

28

T/F. The Real Estate Commission sets the legal rate of commissions for Utah

False

29

A listing where the seller wants a specific amount of money, and the broker keeps everything over that amount as commission is called a ___ _______ and is _______ in Utah.

net listing, Illegal

30

The concept that says the agent who first took the buyer to the property earns the commission is called:

To and through