-
What is an implied contract?
A contract that is formed from actions rather than words
-
Expressed contracts can be both..?
Oral and written
-
The statute of frauds dictates what or certain contracts to be enforceable?
That they must be in writing
-
What 3 contacts must be in writing according to the statute of frauds?
- Contracts for the purchase or transfer or real estate
- Purchase or option to purchase
- Leases of 3 years or more
-
Bilateral contacts are a ____ for a _____?
promise for a promise (I promise to buy and you promise to sell)
-
A unilateral contract is a promise exchange for the _____ of another?
performance. (I promise to sell if you decide to buy, and option contract for example)
-
What type of contact is binding on both parties?
Valid
-
What type of contract lacks one or more of the essential elements of a valid contract?
Void
-
What type of contract binds one party but not the other because of fraud, duress, or misrepresentation?
Voidable
-
What are the three stages of a contract?
-
During the offer period of a contract, what is not usually required to be deposited?
Earnest Money
-
What must happen during the offer stage of a contract with any changes made?
They must be struck through and initialed by all parties to be enforceable
-
What are the things that can kill an offer before it becomes a contract?
- Revoke from buyer
- Rejection from seller
- Any change to that offer (creates new counter offer)
- Lapse of reasonable time (court decided)
- Destroyed property
- Death of either party
-
Once a contract is formed what is usually then deposited based on state law?
Earnest money
-
An amendment changes what?
Contract
-
An addendum changes what?
Offer
-
What are the elements of a valid contract?
- Contractual capacity
- Offer and acceptance
- Lawful Objective
- In writing and signed
-
To be competent for a contract what must you be?
18, sane and sober
-
When does a contract become binding?
Upon communication of acceptance
-
When the seller makes changes to the offer document, initials, and signs the offer, the seller has created a what?
Counter offer
-
Willful misrepresentation or omission is ____ of a material fact?
Intentionally withholding or misinforming
-
Because NC is a caveat emptor state, the seller does not have to disclose what?
Anything regarding the condition of the property
-
Even though a contract has to be in writing, it can be written how?
On any format if the buyer and seller agree. Does not have to be on legal form
-
The law assumes what by signing a contract?
That both parties have read and understood
-
Amendments must be in what format?
Written and signed by all parties
-
In NC, contracts are assignable unless?
language in the contract prohibits it
-
What is novation?
Transfers all contract rights and liabilities. (new contract replaces old contract)
-
What is the one thing that cannot terminate most contracts?
Death.
-
What is one thing regarding contracts that do terminate in the even of a parties death?
The offer
-
A seller that takes fixtures after closing that were not excluded in the contract would be in?
Breach
-
What are the 5 remedies a non breaching party has against a breaching party?
- Acceptance of partial performance (choose not to sue)
- Unilateral rescission (nonbreach chooses to back out because of failure of other party)
- Specific performance (sue to force performance of contract)
- Liquidated damages (retaining deposit and only if stated in contract)
- Actual damages (sue for money lost)
-
In a purchase contract from the NCAR, what is the sellers sole remedy for a buyers breach in contract?
Retention of earnest money
-
What does a purchase agreement do?
Creates conditions for closing
-
When does an offer become an executory contract?
When the last party has signed, the other party notified, and communication of acceptance has been made
-
What is an option?
The potential buyer purchases the right to buy at a fixed price for a designated term
-
An option is what type of contract?
Unilateral
-
When the potential buyer decides to purchase in the option period, what does the contract then become?
Bi-Lateral
-
What is a sale leaseback?
When the owner sells the property and leases it back
-
What is a lease purpose?
I promise to let you occupy and you promise to pay rent
-
What are the essential elements of a lease?
- Names of lessor and lessee
- Description of property
- Rent Terms
-
What is a net lease?
Tenant pays base plus some expenses
-
What is a percentage lease?
Rent based on gross income of sales or business
-
What is a ground lease?
Lease on unimproved property
-
What is a full service lease?
Base rent plus prorated share of building operating expenses
-
When does an estate for years expire?
Expiration date (not death)
-
When does a periodic estate terminate?
Upon notice (not death)
-
When does an estate at will terminate?
Death or notice
-
What is actual eviction?
Court action brought by landlord because tenant is in breach
-
What is constructive eviction?
Tenant moving out because of breach from landlord
|
|