Terminology Contracts

Agency

A relationship in which one person is authorized to act on behalf of another in business or legal matters

antitrust laws

Laws designed to promote fair competition and prevent monopoly or trade practices

bilateral contract

promise for a promise

COLAN

Care, obedience, loyalty, accounting notice

commingling

The illegal act of mixing business and personal funds

designated agent

An agent appointed by a brokerage to represent a specific client

dual agency

when an agent or brokerage represents BOTH buyer and seller

essential elements to a contract

offer acceptance consideration, legality in capacity

exclusion contract

an agreement that excludes certain parties or conditions in real estate

executive contract

A contract in which all parties have fulfilled their obligations

Express contract

agreement stated in words, oral or written

fiduiciary

A person who has legal and ethical duty to act in the best interests of another

Optionee

A person who receives the right to buy or lease a property under an option

Optionor

The person who gives or sell the option to another party

Periodic tenancy

At least that automatically renews for successive periods

unenforceable contract

A valid contract that cannot be enforced in court due to a legal technicality

unilateral contract

A promise made by one party in exchange for the performance of an act by another