Texas Law of Contracts - Chp. 3 Introduction to Contracts

Contract

A legally enforceable agreement to do, or not to do something.

Option

An irrevocable right to buy a property at an agreed upon price.

Contract

A legally enforceable agreement to do, or not to do something is called a/an...?

Option

Deed

Contract

Statement

Option

An irrevocable right to buy a property at an agreed upon price is called a/an...?

Option

Lease

Purchase contract

Listing contract

Express Contract

A contract that has been put into words, either spoken or written.

Implied Contract

An agreement that has not been put into words, but is implied by the actions of the parties.

Statute of Frauds

A State law, based on an Old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g. contracts for the sale of real property, contracts not be performed within one year.

Express contract

A contract that has been put into words, either spoken or written is considered a/an...?

Express contract

Implied contract

Dual contract

Void contract

Implied contract

An agreement that has not been put into words, but is implied by the actions of the parties is considered a/an...?

Express contract

Implied contract

Dual contract

Void contract

Bilateral Contract

A contract in which each party promises to do something.

Unilateral Contract

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract.

Bilateral contract

A written listing agreement between a broker and his/her principal is considered what type of contract...?

Unilateral contract

Bilateral contract

Implied contract

Void contract

Unilateral

A .................. contract exists when one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it?

Unilateral

Bilateral

Executed

Void

Executed Contract

A contract that has been fully performed.

Executory Contract

A contract in which something remains to be done by one or both of the parties.

Consideration

Anything given or promised by a party to include another to enter into a contract, e.g., personal services or even love and affection. It may be a benefit conferred upon one party or a detriment suffered by the other. (does not have to be money)

offer and acceptance, consideration, consent, legal purpose, legally competent parties, and must be in writing and signed by parties

Elements of a valid contract

Valid

Having force, or binding force; legally sufficient and authorized by law.

Void

To have no force or effect; that which is unenforceable.

Voidable

That which is capable of being adjusted void, but is not unless action is taken to make it so. (ex. if a minor makes a contract)

Unenforceable Contract

A valid contract rendered unenforceable by some statute or law.

Valid

A contract that is legally sufficient and authorized by law is considered...?

Valid

Void

Unenforceable

Formal

Void

A contract that does not have force or effect is considered...?

Valid

Void

Executed

Formal

Voidable

That which is capable of being adjusted void, but is not unless action is taken to make it so is considered...?

Express

Implied

Voidable

Executed

Minor

A voidable contract is typically used by a...?

Minor

Adult

Buyer

Seller

Assignment

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract.

Novation

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties

Breach of Contract

A violation of the terms or conditions of a contract without a legal excuse.

Rescission of Contract

The abrogation or annulling of contract; the revocation or repealing of contract by mutual consent by parties to the contract, or for cause by either party to the contract.

4 years

Statue of limitation for Real Estate

Yes because both parties would have agreed and thus there would have been consideration

If Buyer Kyle would have agreed to give Seller George his prized possession and $50,000 in cash, would the contract still be valid?

ANo because cars are not as valuable as real estate property

BNo because cars cannot legally be exchanged for any real property

CYes because both parties would have agreed and thus there would have been consideration

DYes because both parties have agreed and no consideration is necessary

No because earnest and option monies are not a requirement for a valid contract

Since Buyer Kyle did not discuss anything about earnest money and/or option monies, could Seller George come back and void the contract?

ANo because earnest and option monies are not a requirement for a valid contract

BNo because it is implied there is earnest and option money through their negotiations

CYes because Seller George is an old man and thus needs earnest and option money to survive

DYes because state law requires that at least earnest money be deposited for a valid contract

AIncompetent clause

BConsideration clause

DNeither a or b

If Seller George were over 65 years of age and was going into a retirement home, he could void the contract under which legal reasoning?

AIncompetent clause

BConsideration clause

CBoth a and b

DNeither a or b

Forbearance

If a contract requires a party to not do something, it is referred to as...?

Performance

Consideration

Forbearance

Blocking

Executed contract

A contract that has been fully performed is considered a/an...?

Executory contract

Void contract

Closed contract

Executed contract

All

Offer and acceptance

Consideration

Legal purpose

A valid contract must include which of the following...?

All of the above

Offer and acceptance

Consideration

Legal purpose

Performance

If a contract requires a party to do something, it is referred to as...?

Forbearance

Consideration

Closing

Performance

Statute of Frauds

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?

Statute of Agency

Statute of Contracts

Statute of Limitations

Statute of Frauds

Executory contract

A contract in which something remains to be done by one or both of the parties is considered a/an...?

Executory contract

Open contract

Executed contract

Void contract

Statute of Frauds

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?

Statute of Agency

Statute of Contracts

Statute of Limitations

Statute of Frauds

AAll of the below

BSales contract

CNet listing agreement

DExclusive right to sell agreement

Which of the following is considered a bilateral contract...?

AAll of the above

BSales contract

CNet listing agreement

DExclusive right to sell agreement

Bilateral contract

An independent contractor agreement is considered what type of contract...?

ABilateral contract

BUnilateral contract

CImplied contract

DVoid contract

Executory contract

A contract in which something remains to be done by one or both of the parties is considered a/an...?

AExecutory contract

BExecuted contract

CVoid contract

DOpen contract

AAll of the below

BConsideration

COffer and acceptance

DLegal purpose

A valid contract must include which of the following...?

AAll of the above

BConsideration

COffer and acceptance

DLegal purpose