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Washington state real estate exam chapter 3

Terms in this set (17)

A contract is
an agreement made by competent parties to do (performance) or not to do (forbearance) a certain act for the breach of which the law provides a remedy
for a contract to be valid
all parties must mutually agree (meeting of the minds). One party must offer and another must accept unconditionally. An acceptance is an unqualified agreement to the terms of an offer. The offer must be definite and certain in its terms, and the agreement must be genuine or the contract may be voidable by one or both parties
Express Contract
the parties declare the terms and put their intentions in words, oral or written.
IMPLIED CONTRACT
agreement is shown by act and conduct rather than words
UNILATERAL CONTRACT
contract in which one party promises to perform before
the other party is obligated to perform
BILATERAL CONTRACT
agreement in which each person promises to perform an act in exchange for another person's promise to perform
EXECUTORY CONTRACT
something remains to be performed by one or both parties
EXECUTED CONTRACT
all parties have performed completely
VOIDABLE CONTRACT
A contract that may be legally avoided at the option of one or both of the parties.
VOID CONTRACT
A contract having no legal force or binding effect.
UNENFORCEABLE CONTRACT
valid, but for some reason cannot be proved by one
or both of the parties
VALID CONTRACT
binding and enforceable with all the basic elements required by law
Basic Elements of All Contracts
Legally competent parties
Mutual consent between the parties (meeting of the minds)
Lawful objective
Sufficient consideration
As required by the statute of frauds, a real estate contract must be in writing to be enforeceable in a court of law.
statute of frauds
A state statute under which certain types of contracts must be in writing to be enforceable.
what two types of real estate contracts must be in writing
(1) Sales (transfers and conveyances) of real property
(2) Any contract that takes more than one year to complete, such as a lease that runs for more than one year
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