contracts re fl

Which set lists the four essential elements every valid contract must have?

Competent parties, mutual assent (offer and acceptance), legal purpose, and consideration.

A buyer and seller shake hands on the sale of a vacant lot for $90,000. Nothing is put in writing. Before closing, the seller backs out. Can the buyer force the sale?

No, because under the Statute of Frauds a contract for the sale of real property must be in writing to be enforceable.

A buyer offers $320,000. The seller responds with a counteroffer at $335,000. The buyer then says, I accept your original $340,000 listing price. Does a binding contract exist?

No, because the seller's counteroffer terminated the buyer's original offer, and the buyer's statement accepting the listing price is itself a new offer the seller is free to accept or reject.

A 16-year-old signs a contract to buy a condominium. Under contract law, this agreement is…

Voidable at the option of the minor, who may enforce it or disaffirm it.

A seller signs a valid contract to sell a unique waterfront home, then refuses to close because she received a higher offer. The buyer wants the house, not money. The remedy that forces the seller to complete the sale is…

Specific Performance.

Buyer A assigns her purchase contract to Buyer B. Later, all three parties sign a new agreement that substitutes Buyer B for Buyer A entirely and releases Buyer A from any further liability. This release of the original party is accomplished through…

Novation.

For $2,000, a seller gives a buyer the right, but not the obligation, to purchase a property at a set price within 90 days. The seller must sell if the buyer exercises the right, but the buyer is not required to buy. This is…

A unilateral option contract, because only the seller is bound to perform if the buyer chooses to exercise.

A purchase contract states that if the buyer defaults, the seller keeps the earnest money as the agreed measure of damages. This clause is an example of…

Liquidated Damages.

A signed purchase contract is contingent on the buyer obtaining a mortgage at no more than 7 percent within 30 days. The buyer applies in good faith but is denied financing, and the contingency period expires. What is the most likely result?

The buyer may cancel and recover the earnest money, because the financing contingency was not satisfied.