Podcast
Questions and Answers
Which scenario best exemplifies an 'executed contract'?
Which scenario best exemplifies an 'executed contract'?
- A buyer signs a purchase agreement for a house but hasn't yet secured financing.
- A landlord and tenant agree on lease terms, but the tenant has not moved in.
- A contractor completes a home renovation project, and the homeowner pays the agreed-upon amount. (correct)
- Two companies negotiate the terms of a merger agreement, but the deal is not yet finalized.
In real estate, what is the primary purpose of an 'earnest money deposit'?
In real estate, what is the primary purpose of an 'earnest money deposit'?
- To pay for the initial property taxes and insurance.
- To demonstrate the buyer's serious intent to purchase the property. (correct)
- To cover the costs of the home inspection.
- To compensate the real estate agent for their time.
A homeowner sells their property 'as is'. What does this typically imply for the buyer?
A homeowner sells their property 'as is'. What does this typically imply for the buyer?
- The seller guarantees the property is free of any defects.
- The buyer accepts the property in its current condition, with all existing defects. (correct)
- The seller is obligated to disclose all known defects, but not repair them.
- The buyer has the right to demand repairs after the sale is complete.
Which of the following best describes 'consideration' in the context of contract law?
Which of the following best describes 'consideration' in the context of contract law?
A contract for the sale of a business includes a clause stating that the sale is contingent upon the buyer obtaining financing within 60 days. What does this 'contingency' mean?
A contract for the sale of a business includes a clause stating that the sale is contingent upon the buyer obtaining financing within 60 days. What does this 'contingency' mean?
What distinguishes an 'express contract' from an 'implied contract'?
What distinguishes an 'express contract' from an 'implied contract'?
A buyer offers $300,000 for a house. The seller responds with $310,000. The buyer rejects it. Later the seller says they will accept the $300,000. Is there a contract?
A buyer offers $300,000 for a house. The seller responds with $310,000. The buyer rejects it. Later the seller says they will accept the $300,000. Is there a contract?
In a real estate transaction, 'caveat emptor' places the responsibility primarily on whom?
In a real estate transaction, 'caveat emptor' places the responsibility primarily on whom?
Flashcards
"As is"
"As is"
Seller sells, and buyer buys property in its current state, disclaiming implied warranties.
Assignment
Assignment
Transfer of a right or contract from one person to another.
Caveat
Caveat
A warning, urging caution.
Caveat Emptor
Caveat Emptor
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Consideration
Consideration
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Contingency
Contingency
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Counteroffer
Counteroffer
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Earnest Money Deposit
Earnest Money Deposit
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Study Notes
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"As is": A legal term disclaiming implied warranties, indicating the buyer accepts the property's current condition.
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Assignment: The transfer of a right or contract from one party to another.
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Caveat: Latin for "let him beware," serving as a warning.
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Caveat Emptor: "Let the buyer beware," meaning the buyer is responsible for inspecting goods or property before purchase and accepts the risk.
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Consideration: Something of value (money, services) given to induce someone to enter a contract.
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Contingency: A contract provision requiring a specific event to occur before the contract can be completed.
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Counteroffer: A response to an offer that is deemed unacceptable.
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Earnest Money Deposit: A down payment made by a real estate purchaser as evidence of good faith.
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Express Contract: A contract where all elements (offer, acceptance, consideration) and terms are specifically stated.
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Implied Contract: An agreement created by the actions of involved parties.
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Executed Contract: An agreement that has been fully performed.
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Executory Contract: A contract that has not yet been fully performed.
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Forbearance: An agreement to delay a foreclosure.
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Liquidated Damages: Contract provision for payment of a specified sum if one party breaches the contract.
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Novation: The act of replacing an obligation, adding an obligation, or replacing a party in an agreement with a new party.
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Offer and Acceptance: Required elements for a legally binding contract.
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Option: A right given for consideration to purchase or lease property within a specific time.
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Power of Attorney: A written instrument authorizing an agent to act on someone's behalf.
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Reformation: A court-ordered change to a written document to reflect its intended content.
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