Contracts and Contract Law Flashcards
7 cards from real Arizona 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 and Contract Law flashcards as text
The legal principle that prevents parties from introducing prior oral agreements to contradict a written contract is the:
Answer: Parol Evidence Rule
The Parol Evidence Rule bars prior oral statements from contradicting the terms of a fully integrated written contract.
What happens to earnest money when a buyer defaults on a valid purchase contract without a valid contingency?
Answer: It is typically forfeited to the seller
A defaulting buyer who has no valid contingency generally forfeits the earnest money to the seller as agreed damages.
The substitution of a new contract or new party for an existing one, releasing the original obligation, is called:
Answer: Novation
Novation substitutes a new contract or party and releases the original party from liability.
A contract that has been fully performed by all parties is described as:
Answer: Executed
An executed contract is one in which all parties have completely fulfilled their obligations.
Under Arizona contract law, time is considered 'of the essence' when:
Answer: The contract expressly states deadlines are mandatory
A 'time is of the essence' clause makes stated deadlines strictly enforceable, and failure to meet them is a breach.
Which remedy allows a court to order a seller to actually convey the property as promised?
Answer: Specific performance
Specific performance compels a party to complete the contract because real estate is considered unique.
A contract signed under threat or coercion is:
Answer: Voidable by the coerced party
Duress makes a contract voidable at the option of the party who was coerced.