COLORADO LAW & PRACTICE - CONTRACTS & AGENCY/ EXAM REVIEW QUESTIONS AND ANSWERS. VERIFIED.| latest update 2024/25|

COLORADO LAW & PRACTICE - CONTRACTS & AGENCY/ EXAM REVIEW QUESTIONS AND ANSWERS. VERIFIED. Voluntary Agreement - -- Meeting of the minds; - Good faith of both parties; - Free from duress or menace. Mutual Mistake - -both parties to a contract have an incorrect belief about an important fact Offer becomes contract when... - -it is accepted by the offeree and acceptance is communicated back to the offeror Offeror may withdraw or rescind the offer without penalty until... - -communication of the acceptance is received by the offeror Mirror Image Offer - -offer accepted without change legally competent parties - -- Sound Mind and Sound Body; - A contract would be voidable by the minor if he chose not to complete the purchase during his minority. Executed Contract - -A contract that has been completely performed by both parties. Equitable Title - -right to later obtain a title Legal Act - -No valid contract may ever exist for an illegal purpose. Two Types of Consideration - -- Benefit - Detriment Benefit - -consideration received by a seller Detriment - -consideration given up by the buyer Consideration - -Anything of value to the other party Voidable Contract - -A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties. Is an oral contract enforcable? - -In general, an oral contract is just as enforceable as a written one, assuming you can prove the terms of the contract. Expressed Contract - -all of the terms and conditions are definite and specific, by either writing or spoken word or action. The parties express their intent. Implied Contract - -one created by inference based on the conduct of the parties. Example: a broker showing homes to a buyer over a period of time may render the buyer liable to a buyer representation contract based on the parties' actions - even though no such agreement was expressed. Good Consideration - -i.e. love and affection, or a promise to refrain from filing a lawsuit NOTE: In a real estate contract, earnest money is generally offered as evidence of the buyer's serious intent. While earnest money would be considered part of the consideration, it is NOT required to create a contract valid under the law. The buyer's promise to buy and the seller's promise to sell are legally sufficient consideration. Offeror - -A person who makes an offer. Offeree - -A person to whom an offer is made. Undue Influence - -Brokers must use care in the level of advice given to clients, especially first-time homebuyers who may be subject to any recommendation by the broker