mutual consent
meeting of the minds
consideration
something given in exchange for a promise
option
an agreement between a buyer and seller giving the
... [Show More] buyer the right to purchase a
property at a present price for a given period of time
void contract
invalid from the beginning and has no effect on the parties. contract to perform illegal
act is a void contract
voidable contract
cannot be enforced against one or more of the parties. most contracts entered into
with minors are voidable at the option of the minor.
valid and enforceable contract
competent parties, mutual consent (offer and acceptance), legal purpose, in writing
(when required by law), consideration
executory contract
defined as a contract that is binding on the parties, with one or more of the parties
having contractual duties that have not yet been performed (from effective date to
closing, the contract is executory)
"time is of the essence"
time for performance is literally interpreted, and must be performed by the day
stipulated
amendments
___________ to the original contract may be needed. common amendments:
changes to closing date, sales price, down payment and or amount financed, repairs
that the seller agrees to perform, removal or waiver of contingencies
addenda
_______ to a contract is an attachment that adds or further describes the rights and
duties of a party. (ex. Financing _______ to obtain acceptable financing) if
_____addendum contradicts the main body of a contract, the provision in the
________ prevails
assignment
_____ of a contract transfers all the rights related to the contract to another party
known as the assignee. assignee assumes primary liability for performance under
the contracts, and the assignor, unless released, remains secondarily liable
novation
new contract is substituted for an existing one
statute of limitations
limitation of time in which an individual may file suit in court for damages because a
party breached a contract. 2 years for oral agreement, 4 years for written
reasons for termination of a contract
mutual agreement, partial performance, substantial performance, impossibility,
operation of law, breach of contract
Enter into a contract with a person who has been judged to be incompetent that
contract is considered: [Show Less]