Contracts Flashcards
7 cards from real Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts flashcards as text
Assignment of a contract refers to:
Answer: Transferring one's rights under the contract to another
Assignment transfers the contractual rights (and often duties) of one party to a third party.
A 'meeting of the minds' refers to:
Answer: Mutual agreement on the essential terms
A meeting of the minds means both parties mutually understand and agree to the contract's essential terms.
Novation in contract law means:
Answer: Substituting a new contract or party for an old one
Novation replaces an original contract or party with a new one, releasing the original obligor.
If a buyer fails to perform and the seller keeps the earnest money as agreed, this is an example of:
Answer: Liquidated damages
Keeping a pre-agreed deposit upon breach is the use of liquidated damages.
Rescission of a contract results in:
Answer: The contract being canceled and parties restored to original positions
Rescission cancels the contract and returns both parties to their pre-contract positions.
An implied contract is one that is:
Answer: Created by the conduct of the parties rather than words
An implied contract arises from the actions and conduct of the parties rather than express words.
A 'breach of contract' occurs when:
Answer: A party fails to perform a contractual obligation
A breach is the failure of a party to fulfill its duties under the contract without legal excuse.