Back to AI Flashcard MakerCivil Law /Virginia Real Estate Principles - Unit 11: Real Estate Contracts Part 1
Amendment
A change to the existing content of a contract (i.e., if words or provisions are added to or deleted from the body of the contract). Must be initialed by all parties.
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Key Terms
Term
Definition
Amendment
A change to the existing content of a contract (i.e., if words or provisions are added to or deleted from the body of the contract). Must be initialed...
Assignment
The transfer in writing of interest in a bond, mortgage, lease, or other instrument.
Bilateral Contract
See contract.
Breach Of Contract
Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.
Consideration
(1) That received by the grantor in exchange for the deed. (2) Something of value that induces a person to enter into a contract.
Contingencies
Provisions in a contract that require a certain act to be done or a certain event to occur before the contract becomes binding.
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| Term | Definition |
|---|---|
Amendment | A change to the existing content of a contract (i.e., if words or provisions are added to or deleted from the body of the contract). Must be initialed by all parties. |
Assignment | The transfer in writing of interest in a bond, mortgage, lease, or other instrument. |
Bilateral Contract | See contract. |
Breach Of Contract | Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due. |
Consideration | (1) That received by the grantor in exchange for the deed. (2) Something of value that induces a person to enter into a contract. |
Contingencies | Provisions in a contract that require a certain act to be done or a certain event to occur before the contract becomes binding. |
Contract | A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy. A contract may be either unilateral, by which only one party is bound to act, or bilateral, by which all parties to the instrument are legally bound to act as prescribed. |
Counteroffer | A new offer made in response to an offer received. It has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror. |
Disclosure | Relevant information or facts that are known or should have been known. |
Earnest Money | Money deposited by a buyer under the terms of a contract, to be forfeited if the buyer defaults but to be applied to the purchase price if the sale is closed. |
Enforceable Contract | A contract that meets all the elements of a valid contract, including compliance with any applicable statute of frauds or other law that requires it to be in writing and signed by the parties. |
Executed Contract | A contract in which all parties have fulfilled their promises and thus performed the contract. |
Executory Contract | A contract under which something remains to be done by one or more of the parties. |
Express Contract | See express agreement. Express Agreement An oral or written contract in which the parties state the contract’s terms and express their intentions in words |
Implied Contract | See implied agreement. Implied Agreement A contract under which the agreement of the parties is demonstrated by their acts and conduct. |
Land Contract | See installment sale. |
Liquidated Damages | An amount predetermined by the parties to a contract as the total compensation to an injured party should the other party breach the contract. |
Land Contract | See installment sale. |
Liquidated Damages | An amount predetermined by the parties to a contract as the total compensation to an injured party should the other party breach the contract. |
Novation | Substituting a new obligation for an old one or substituting new parties to an existing obligation. |
Offer And Acceptance | Two essential components of a valid contract; a “meeting of the minds.” An offer is a promise made by the offeror, requesting something in exchange for that promise. Acceptance is a promise by the offeree to be bound by the exact terms proposed by the offeror. |
Option | An agreement to keep open for a set period an offer to sell or purchase property. |
Owner Financing | The seller is the primary lender, securing the property by means of a deed, note and mortgage, deed of trust, or contract for deed. In its traditional form, the buyer takes possession of the property and the seller retains legal title until paid in full, but some states have softened this outcome to provide that the buyer is entitled to legal title after a specified period of successful loan payments. |
Purchase Money Mortgage | A note secured by a mortgage or deed of trust given by a buyer, as borrower, to a seller, as lender, as part of the purchase price of the real estate. |
Rescission | The practice of one party canceling or terminating a contract, which has the effect of returning the parties to their original positions before the contract was made. |
Statute Of Frauds | That part of a state law that requires certain instruments, such as deeds, real estate sales contracts, and certain leases, to be in writing to be legally enforceable. |
Suit For Specific Performance | See specific performance. |
“Time Is Of The Essence” | A phrase in a contract that requires the performance of a certain act within a stated period of time. |
Unenforceable Contract | A contract that has all the elements of a valid contract, yet neither party can sue the other to force performance of it. For example, an unsigned contract is generally unenforceable. |
Unilateral Contract | A one-sided contract wherein one party makes a promise so as to induce a second party to do something. The second party is not legally bound to perform; however, if the second party does comply, the first party is obligated to keep the promise. |
Valid Contract | A contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it. |
Void Contract | A contract that has no legal force or effect because it does not meet the essential elements of a contract. |
Voidable Contract | A contract that seems to be valid on the surface but may be rejected or disaffirmed by one or both of the parties. |