Express Contract Flashcards

Express Contract Flashcards Required Elements of an Option ContractAmount of consideration, Length of the option period, Sale price of the property, in writing and signed by the seller Valid ContractA contract that contains all the essential elements of a contract and therefore is binding on all parties.Performance of a ContractTo meet all terms of a Contract Novation of Contracta substituted contract to which the promised is a party, which substitutes a new promisor for an existing promisor, who is consequently no longer liable on the original contract and is not liable as a delegator -Same people, contract substituted Remedies of a BreachAccept partial performance, Rescind the contract unilaterally, sue for damages, sue for specific performance, accept liquidation damages, Mutually rescind the contract Recissionthe unmaking of a contract so as to return the parties to the positions they occupied before the contract was made - both parties agree to cancel a contract Enforcing/Terminating Option Contracts Who's Who RuleOptionor (Seller) is bound by the contract and the Optionee (potential buyer) enforces it OptioneeA potential buyer in an Option Contract Executed ContractA contract in which all parties have fulfilled their promises and met all terms of the contract.Enforceable contracta contract that can be enforced in court Option ContractAn offer to purchase a specific piece of real estate but without the obligation to buy it Voidable ContractA contract that may be legally avoided (canceled, or annulled) at the option of one of the parties Essential Items of a ContractLegally Competent Parties, Mutual Offer and Acceptance, Consent (Voluntary Agreement), Legal Purpose, Considerations Executory ContractA contract in progress or more terms remain undone Void ContractA contract with no legal effect even when all of the essential elements for a contract exist Unenforceable ContractContract that court will not uphold, usually because of some rule of law Novation of Partiesis where a new party is substituted for an existing party OptionorSeller of the property (typically in commercial) NovationSubstituting a new obligation for an old one or substituting new parties to an existing obligation.Implied ContractA contract that is based on the actions or behaviors of the parties, not in words

Breach of ContractWhen one party cancels against the wishes of the other party or obligations were not met Bilateral ContractA mutual exchange of promises between two parties Invalid ContractA contract where more then one essential item is missing Unilateral ContractA contract that contains a promised by only one party to the other Right of First RefusalCan not sell to others before offering it to right holder