Essential elements of a contract - answer✔1. Mutual Assent
2. Consideration
3. Legal Contractual capacity of the parties
4. Lawful objective and means of accomplishing objective
5. In writing
Offeror vs. Offeree - answer✔Offeror makes the offer, offeree accepts
Counteroffer - answer✔Rejects the original offer
Methods of acceptance - answer✔-Oral communication
- Personal delivery
- Electronically
- mail
Mailbox Rule - answer✔As long as it leaves the offeror's possession its deemed as
communicated
Mutual Assent - answer✔meeting of the minds
Termination of offers - answer✔revocation, rejection, expiration, operation of law. Any offer
can be terminated prior to acceptance
3 things that mean you're under contract - answer✔Offer, acceptance, communication of
acceptance
Exception to revoke acceptance - answer✔The exception was an option contract
Streets and sellers - answer✔sellers must state if streets are private or public
Fraud - answer✔intentional deception resulting in injury to another person
ALL RIGHTS RESERVED.
Exemptions to property disclosures - answer✔- Foreclosure
- New Construction
- Estate sales
- If buyer is the current tenant/renter
Statue of frauds - answer✔must be in writing to be enforceable
Novation - answer✔Substituting a new obligation for an old one or substituting new parties to
an existing obligation.
Discharge of contracts - answer✔1. Agreement of the parties
2. Full & complete performance
3. Material breech
4. Impossibility of performance
5. Operation of law
Backup Contract Addendum - answer✔Used if there is an offer on the property already
Lead paint 1978 - answer✔If the house is built prior to 1978; seller must do a residential
property disclosure
Assignment of contracts - answer✔The 2T is not assignable except in a 10-31 exchange
Parol Evidence Rule - answer✔All previous negotiations/informal agreements are superseded
by final written contract terms and cannot be used to alter the written contract terms
Compensatory Damages - answer✔Designed to compensate party that was harmed
Liquidated Damages - answer✔If buyer breeches the agreement; seller gets the earnest money
as their sole remedy. Pre-agreed upon amount. Earnest money is liquidated damages. Sellers
get to keep Earnest Money
Auction Sales - answer✔Look up in boo
What happens after 14 days - answer✔The non-dealing party of a contract can terminate
12T contract - answer✔Vacant lot & Land
800T contract - answer✔New construction
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