Unit 11 - Real Estate Contracts

These flashcards cover key terms and definitions related to real estate contracts as outlined in Unit 11.

Contract

A voluntary agreement or promise between legally competent parties, supported by legal consideration, to perform or refrain from performing some legal act.

Express Contract

A contract in which the terms are stated clearly, either orally or in writing.

Implied Contract

A contract in which the agreement is demonstrated by actions or conduct of the parties.

Bilateral Contract

A contract where both parties make promises to each other; each party is obligated to perform.

Unilateral Contract

A contract where only one party makes a promise in exchange for an act by the other party.

Executed Contract

A contract in which all parties have fulfilled their promises, and the terms have been performed.

Executory Contract

A contract in which one or both parties still have obligations to perform.

Mutual Assent

The agreement between parties on the terms of a contract, often demonstrated by an offer and acceptance.

Consideration

Something of legal value offered by one party and accepted by another as an inducement to perform or refrain from performing.

Legally Competent Parties

All parties involved in a contract must have the legal capacity to enter into a binding agreement.

Validity of Contracts

A contract is valid if it meets all essential elements required by law.

Liquidated Damages

A pre-agreed amount of money specified in the contract as compensation in case of a breach.