Questions and Answers
What consequences should Peter expect after this week's security check?
He will receive another monetary fine.
Which of the following is not a recommended action to perform before signing a contract?
Why is understanding the terms of a contract important for both parties involved?
Understanding the terms of a contract is important because a person must be certain of the obligations towards the other party, and must also be aware of penalties incurred if those obligations are not met.
A written contract is not legally binding until _____
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What is the consideration in the contract between Bob and Suzie?
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What is required to have a legally valid contract?
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Why are verbal contracts generally discouraged?
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If it is completely impossible to put a contract in writing, which of the following would be the best substitute?
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According to the contract, which of the following is not a responsibility of the buyer?
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Which of the following is not a change Robert should ask Cindy to make to the contract?
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If Kyle decides to split the missing payment into two parts and pay it over the next two months, which of the following statements is false?
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Which of the following events invalidates the contract Susan signed with Super Video?
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According to the contract, what does Kyle need to do if he cannot make his monthly payment by the first of the month?
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In forming a contract, 'consideration' is _____.
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Which action invalidates the contract Kyle signed?
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Which of the following statements is true regarding Susan's movie rental?
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How much will Susan owe Super Video if she returns both movies today, both of which are three days late?
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According to the rental agreement, which of the following is not a responsibility of the customer?
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What should Tim expect to pay extra for not refueling after renting the car?
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Which is not a responsibility of the rental agency representative?
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What action invalidates the contract Tim signed with the rental agency?
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In forming a contract, the 'meeting of the minds' is _____.
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Why are verbal contracts generally discouraged?
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In the event a car is found parked overnight by a homeowner, how will the HOA act on the first infraction?
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Study Notes
Home Loan Contracts
- Principal and interest divided into 360 monthly payments; payments due the first day of each month.
- Late payment considered delinquent if not received by the 1st; late charge of $75 if not received by the 15th.
- Failure to pay by the month's end reported to credit agencies.
- Payments may be split into three equal installments if notification is given within one week of delinquency.
Car Purchase Agreements
- Buyer may need to adjust the total number of payments to reflect down payment inclusion.
- Clarity is essential in detailing payment structure in contracts.
Rental Agreements
- Rentals due back by midnight on the due date; late charge of $1.50 per day.
- Items not returned by the fifth day considered sold, incurring purchase cost plus late fees.
- Valid rental agreement requires proper notification of due dates to customers.
Consideration in Contracts
- Consideration is defined as items of value exchanged in a contract, e.g., services rendered and payment.
Responsibilities in Contracts
- Contract parties must understand their obligations.
- Contracts are legally binding once signed by all parties involved.
Avoiding Contract Issues
- Ensure both parties are aware of penalties for failing to meet obligations.
- Verbal contracts can lead to enforcement difficulties without written documentation.
Ignoring Contracting Requirements
- A signed rental agreement does not protect the agency if check-out procedures are inadequate (e.g., lack of fuel level verification).
- Late fees and purchase fees can accumulate based on the terms of rental agreements.
Revisions to Contracts
- Always review and possibly adjust contract terms to reflect accurate work estimates and protection against unforeseen costs.
- Ensure all involved parties agree on essential contract details.
Knowledge of Legal Terms
- Understanding the "meeting of the minds" concept is essential for valid agreements, ensuring all parties are on the same page regarding contract terms.
- Contract law principles stress the importance of enforceability and mutual obligations between the parties.
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Description
Test your knowledge of simple contracts with these flashcards. Each card presents key concepts and excerpts relevant to home loan agreements and payment terms. Perfect for students or anyone needing a refresher on the basics of contract law.
