Promulgated Forms – Champ ions Exam Study Guide with Complete Solutions 100% Verified 2024/2025 Mutual Consent - Correct Answer "meeting of the minds" unilateral contract - Correct Answer A contract in which only one party is obligated to perform consideration - Correct Answer Something given in exchange for a promise option - Correct Answer an agreement between a buyer and seller giving the buyer the right to purchase a property at a preset price for a given period of time unenforceable contract - Correct Answer A contract that cannot be enforced due to some flaw or other issue in the contract valid contract - Correct Answer one that meets all requirements of law void contract - Correct Answer is invalid from the beginning and does not affect the parties. A contract to perform an illegal act is a void contract.voidable contract - Correct Answer is one that cannot be enforced against one or more of the parties.Most contracts entered into with minors are voidable at the option of the minor.Unenforceable Contract - Correct Answer is one that cannot be enforced due to some flaw in the contract, passage of time, or other issues that make enforcement impossible elements of a valid/enforceable contract - Correct Answer COLIC Competent parties, Offer and acceptance (mutual parties), Legal purposes, In writing, Consideration Competent parties - Correct Answer The general rule of law is that all parties to a contract have read it and understand it People w/o mental capacity to understand can have a voidable contract, same with minors 1 / 3
mutual consent - Correct Answer is often referred to as a "meeting of the minds." For a contract to exist, there must have been a meeting of the minds (offer and acceptance) between the parties.legal purpose - Correct Answer A contract for an illegal purpose is void, and the law treats the contract as if it were never created. An example of a void contract would be one to have somebody killed or to deliver illegal drugs. All contracts must have a legal purpose in order to be valid in writing - Correct Answer in order to obey Statute of Frauds, leases for more than 1 yr and real estate must be in writing consideration - Correct Answer is defined as something given in exchange for a promise. There is no requirement that the consideration be in the form of money. Consideration in a contract could be nothing more than a promise made by one party in exchange for a promise made by the other.executory contract (contract ready to be executed) - Correct Answer A contract that has not yet been fully performed.The effective date is the date that acceptance was communicated to the offering party (i.e. seller accepted offer on Jan 3rd, buyer was told on jan 4th of acceptance, effective date is 4th) the contract has been fully executed when.. - Correct Answer the sale is closed bilateral contract - Correct Answer A contract of sale between a buyer and seller is a bilateral contract because both parties have made promises; therefore, both parties have duties to perform.a promise for a promise unilateral contract - Correct Answer one person promises, one person acts.i.e. a seller promises to hold a property when the buyer gives an option. buyer can still choose not to buy, but the seller must sell to buyer if they choose to do it. seller is making the promise option - Correct Answer A seller, in exchange for some form of consideration (an option fee), gives the buyer the right to purchase the property at some preset price and terms for a period of time. 2 / 3
unilateral contract lacks - Correct Answer mutuality amendments to the contract - Correct Answer • Changes to the closing date • Changes to the sales price, down payment and/or amount financed • Repairs that the seller agrees to perform • Removal or waiver of contingencies addendum - Correct Answer to a contract is an attachment that adds or further describes the rights and duties of the parties assignment - Correct Answer of a contract transfers all of the rights related to the contract to another party known as an assignee.novation - Correct Answer occurs when a new contract is substituted for an existing one statute of limitations - Correct Answer All states have a limitation of time in which an individual may file suit in court for damages because a party breached a contract.
- years for oral contract
- years for written
- / 3
doctrine of laches - Correct Answer "out of time" Failure to file suit within the time allowed will result in the party losing his or her contracted rights reasons to terminate a contract - Correct Answer BIMPOS Breach of contract Impossibility Mutual agreement Partial performance Operation of law Substantial performance