Contract Law for Real Estate Agents Lecture

Flashcards covering key vocabulary and principles in contract law related to real estate.

Contract

An agreement between two or more parties that generates rights and obligations and is intended to have legally enforceable consequences.

Agreement

A meeting of minds—'consensus ad idem'—where parties are agreed about the same thing and intend for the agreement to be legally enforceable.

Void Contract

A contract that was never legally valid from the start and has no effect

Voidable Contract

A valid contract that can be rejected by one party, who has the legally protected option to do so.

Unenforceable Contract

A contract that, while valid, will not be enforced by a court; it is not void, but may be non-compliant with legal requirements.

Executed Contract

A legal document that has been signed by all parties involved.

Executory Contract

An agreement that has been agreed upon but not yet fully performed by all parties.

Bilateral contract

An agreement between two parties in which both sides agree to fulfill their obligations.

Unilateral Contract

A one-sided agreement where one party promises to pay after the completion of a task by the other party.

Consideration

Something of value exchanged between parties in a contract, essential for the contract to be legally enforceable.

Offer

A promise made by one party to another in exchange for performance, forming the basis of a contract.

Acceptance

An unequivocal agreement to the terms of an offer, which, when communicated, completes the formation of the contract.

Mutual Assent

The mutual agreement of parties to contract, comprised of a clear understanding of the terms and conditions.

Legality

The principle that contract terms must be lawful and cannot involve illegal activities.

Capacity to Contract

The legal ability of a person to enter into a binding contract, requiring competence to understand terms and obligations.

Genuineness of Assent

The principle that parties must enter into a contract willingly and without coercion or deception.

Form of Contract

The legal requirements for a contract to be valid and enforceable, which can include written agreements and signature.

Discharge of Contract

The termination of a contract, which can occur through agreement, impossibility of performance, lapse of time, and more.

Breach of Contract

Failure by one party to fulfill their obligations as stipulated in the contract, providing grounds for legal remedies.

Remedies for Breach

Legal solutions available when a contract is breached, including damages, specific performance, and rescission.

Specific Performance

A remedy requiring the breaching party to fulfill their contractual obligations as originally agreed.

Injunction

A court order that requires a party to do or refrain from doing something, often used to prevent harm.

Recission

A remedy that cancels a contract and restores both parties to their pre-contractual positions.

Damages

Monetary compensation awarded to an innocent party for loss suffered due to breach of contract.