REAL ESTATE CONTRACTS: Lesson 7-Essential elements of a

REAL ESTATE CONTRACTS: Lesson 7-Essential elements of a

contract/Defects/Termination/Statute of Frauds Flashcards After acceptanceOther than in Louisiana, when does an offer become irrevocable?Constructive or actualCommunication of acceptance may be viewed in what two ways?Actual communicationIf there is no specific means of communication desired by the offeror, this is said to occur when the offeror receives written or oral communication of acceptance CounterofferCreated by the rejection of an original offer, it invalidates the original offer and in effect constitutes a new offer DisclosureThis essential element of a valid contract requiring that an accurate and valid legal description of the subject property must be disclosed, including the street address of the property ConsiderationName the essential element of a valid contract that requires each party to have pledged to exchange something of value with the other party, of which may be tangible or intangible and may include granting the legal right to do something, or making a promise to do something Actual and constructiveWhat are the two types of fraud that are considered to be defects of a contract?Mistakes-of-factThese defects of contracts are errors regarding the facts of a contract, like misunderstanding as to the location of a parcel of land being conveyed "Cause"(Civil law term) the reason a person obligates himself. In Louisiana, we must have this for a contract to be valid, even if money is involved. Promise is considered sufficient in regards to this Mistakes-of-factMistakes-of-lawName the two types of mistakes that are considered to be defects of contracts LachesDelay or negligence in asserting one's legal rights Mistakes-of-lawThese defects of contracts occur when a party, in full knowlege of the facts, comes to an erroneous conclusion as to their legal ramifications Date of expiration of contract or upon rejection by offerorIn Louisiana, offers are irrevocable and considered valid until...NovationThe substitution of one party to the contract with a new party, or replacement of a new obligation for an old one RescissionUnder certain conditions, one party may cancel or terminate the contract as if it had never been made. This is known as what?

Valuable and goodWhat are the two acceptable types of consideration in a valid contract?LachesRelated to the Statute of Limitations, this general legal concept holds that one may lose his legal rights if he inexcusably fails to excercise them within a reasonable time

• Offer and acceptance2. Consideration3. Legal capacity4.

Legal objective5. Disclosure Name the Essential Elements of a Valid Contract MenaceThe actual threat to commit duress

• Fraud2. Mistakes3. Undue influence4. Duress5. MenaceName the defects of a contract that would make a contract

voidable DischargedThis can be brought about in several different ways and is said to happen to a contract when the obligation of all parties to perform or not perform is terminated "Lesion beyond moiety"(Civil Law term) A situation that exists when a sale of immovable property has been made for less than half of its market value; the seller can sue to rescind the sale for up to one year from the time of the sale The Statute of FraudsThis stipulation of the law holds that real estate contracts must be in writing if they are to be enforcable by the courts Constructive communicationThis type of communication occurs when an offeror specifies the means by which he wants his offer accepted; it is legally binding as soon as the offeree follows the offeror's directions

• The date2. A description of the property3. The terms of

payment4. The signature of the party incurring the debt of obligation The Statute of Frauds specifies that this information must be contained in real estate contracts Valuable ConsiderationA promise or an act of legal value bargined for and received in return for a promise. ie. money, real property The agent presents him with the accepted contract A buyer becomes obligates when...Good considerationThings of abstract value such as love, affection, friendship or loyalty Actual fraudThe type of fraud that is commited when there is intent to deceive; i.e. lying or withholding pertinent information "Meeting of the minds"Offer and acceptance is also known as...Constructive fraudThis kind of fraud is committed with no intent to harm, mislead or misrepresent; i.e. breach of trust, responsibility or dutie Offer and AcceptanceWhat essential element of a valid contract requires that all parties enter into a contract with a clear understanding of the contract's terms and agreements?Specific performanceA remedy which the court will grant on certain cases, compelling the defendant to perform or carry out the terms of a valid, existing agreement or contract

Undue influenceThe use of one's power or authority to force another person to enter into an agreement against his will Legal objectiveName the essential element of a valid contract requiring a contract to not be in violation of the law therefore lacking legality of purpose and making it not valid Legal capacityWhich essential element of a valid contract requires that all parties of the contract must be legally competent and duly authorized (legal age and mentally competent) DuressThe unlawful influence exerted upon a person to force him to act against his own will, which includes physical force, property damage and confinement. The person who is being forced into the contract has the right to terminate the contract