Chapter 4 National Real Estate Exam Prep (Champions School of Real estate)Latest Update Graded A+

Chapter 4 National Real Estate Exam Prep (Champions School of Real estate)Latest Update Graded A+ Express contract Contract that is written or stated Implied contract Contract by actions or evidence Unilateral Contract binds only one party. Example an option Option contract The right to purchase property within a definite time at a specified price Bilateral contract Exchange of promises, binds both parties. Required elements of a contract 1. Competent parties 2. Offer and acceptance 3. Legal purpose 4. In writing 5. Consideration Executed (Fully executed) When all the terms and conditions of the contract have been met and carried out. Executory A contract that is signed, but not yet carried out Void or Invalid Contract No contract at all, not enforceable by law Voidable Contract An agreement that may be terminated by one of the parties Unenforceable Contract A valid contract rendered unenforceable by some statute or law. Mutual rescession When parties agree to cancellation, the contract is terminated. Default Is non-performance of a duty under a contract Liquid damages Money damages set out in the contract Punitive damages punish the defaulting parties Compensatory damages Set to cover the actual injury or economic loss Statue of Frauds All contracts that relate to the transfer of any interest in real estate must be in writing to be enforceable. Verbal agreement is voluntary but not enforced by courts. Time is of the essence A clause in a contract that allows each party to hold the other to strict performance on the date specified