Contract Negotiation & Documentation Flashcards

An electronic signature on a residential lease is generally:

Answer: Legally valid under the federal E-SIGN Act and state UETA laws

E-SIGN and UETA give electronic signatures the same legal effect as handwritten ones.

A lease states rent is due on the 1st with a grace period to the 5th. When can a late fee typically be applied?

Answer: After the grace period ends

Late fees apply only after the contractual grace period expires, subject to state limits.

Which practice best protects the integrity of lease documentation?

Answer: Having all parties initial and date any changes and keeping fully executed copies

Initialed, dated changes and complete executed copies prove what both parties agreed to.

An escalation clause in a multi-year residential lease:

Answer: Specifies scheduled or formula-based rent increases during the term

Escalation clauses set predetermined rent increases, such as fixed percentages or CPI adjustments.

When negotiating with a prospect, what is the 'BATNA'?

Answer: Best Alternative To a Negotiated Agreement

BATNA is the best option a party has if negotiations fail, guiding how far to concede.

The covenant of quiet enjoyment in a lease guarantees the tenant:

Answer: Possession and use of the premises without substantial interference by the landlord

Quiet enjoyment protects the tenant's possession and use from substantial landlord interference, not all noise.

A guarantor signs a lease guaranty. If the tenant defaults on rent, the guarantor is:

Answer: Responsible according to the terms of the signed guaranty

A guarantor is liable to the extent defined in the guaranty agreement.