PA Real Estate Exam- Contracts

A voluntary agreement between legally competent parties to do or refrain from doing some legal act , supported by legal consideration

Competant parties Offer and Acceptance- must be a meeting of the minds Legality of Object- purpuse must be legal Consideration- an act of forbearance, or the promise thereof Description of real estate must be accurate Written & signed

A promise not to do something that a party is legally entitled to do.

Parties state terms and show intentions in words; may be either oral or written

Agreement demonstrated by acts and conduct

Both parties promise to do something; one promise is given in exchange for another

Only one party makes a promise; if the second party complies, the first party is obligated to keep the promise, such as an option or open listing

Both parties have fulfilled their promises and thus performed the contract

Something remains to be done by one or both parties

Complies with all essentials of a contract; binding and enforceable on both parties

Lacks an essential element of a valid contract; has no legal effect

Appears to be valid on its surface but may be disaffirmed because one of the parties signed when a minor, when under duress, or as a result of fraud or misrepresentation

Appears to be valid, but neither party may sue the other to force performance; for example, an oral agreement to pay a commission

All terms of contract have been carried out

Party remains liable because the contract was not completed exactly as required.