Promulgated Forms - Champions 2024 Practice Quiz with Complete Solutions.

Void Contract - ANSWER-Invalid from the beginning and voidable contract is one that can't be enforced against one or more parties (minors are voidable at the option of the minor). Example of Void Contract - ANSWER-A contract between two parties to commit an illegal act is a void contract. Elements of a Valid Contract - ANSWER-COLIC Competent Parties Offer and Acceptance (mutual consent) Legal Purpose In Writing (when required by law) Consideration Earnest Money - ANSWER-Not a requirement of a valid contract Competent parties - understood contract then you are competent - not competent - under the influence of drugs or alcohol Leases - ANSWER-Leases for more than 1 year must be in writing Consideration - ANSWER-Earnest money is not one of the requirements of a valid contract. Consideration is something given in exchange for a promise. Executory Contract - ANSWER-Contract stage from the effective date through the closing. Fully executed at closing when it is funded. Will be executed in the future. Amendments/Addenda - Common Amendments - ANSWER-Changes to the original contract (changes to closing date, sales price, down payment, repairs) Addenda - ANSWER-Additions to the contract - provisions in the addendum prevails of the main body of the contract. 3rd party financing Performance of Contract - ANSWER-Assignment - A contract transfers all of the rights related to the contract. Contracts for personal services are not assignable (buyer rep agreement/listing agreement) Novation - ANSWER-Substituting a new contract for an existing one - doctrine of laches