Champions Promulgated Forms Exam Questions and Answers (Graded A+)

mutual consent - ANSWER-meeting of the minds consideration - ANSWER-something given in exchange for a promise option - ANSWER-an agreement between a buyer and seller giving the buyer the right to purchase a property at a present price for a given period of time void contract - ANSWER-invalid from the beginning and has no effect on the parties. contract to perform illegal act is a void contract voidable contract - ANSWER-cannot be enforced against one or more of the parties. most contracts entered into with minors are voidable at the option of the minor. valid and enforceable contract - ANSWER-competent parties, mutual consent (offer and acceptance), legal purpose, in writing (when required by law), consideration executory contract - ANSWER-defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed (from effective date to closing, the contract is executory) "time is of the essence" - ANSWER-time for performance is literally interpreted, and must be performed by the day stipulated amendments - ANSWER-___________ to the original contract may be needed. common amendments: changes to closing date, sales price, down payment and or amount financed, repairs that the seller agrees to perform, removal or waiver of contingencies addenda - ANSWER-_______ to a contract is an attachment that adds or further describes the rights and duties of a party. (ex. Financing _______ to obtain acceptable financing) if _____addendum contradicts the main body of a contract, the provision in the ________ prevails assignment - ANSWER-_____ of a contract transfers all the rights related to the contract to another party known as the assignee. assignee assumes primary liability for performance under the contracts, and the assignor, unless released, remains