Real Estate Fundamentals - Chapter 9: Contracts

Explanation
A legal agreement between two or more parties is known as a contract. This means that when two or more parties come to an agreement and fulfill certain legal requirements, they create a binding contract. Contracts are used in various situations, such as business transactions, employment agreements, or even personal arrangements. They outline the rights and obligations of each party involved and provide a legal framework for resolving disputes or enforcing the terms of the agreement. Therefore, the statement "A legal agreement between 2 or more parties is known as a contract" is true.

Explanation
It is known as "The Agreement of Sale".

Explanation
This statement is true because a property can be distinguished from others using various identifiers such as its address, tax parcel number, deed book and page number, or a legal land description. These identifiers provide unique information about the property that sets it apart from all others.

Explanation
All factors are true EXCEPT legal age in PA is 18, not 21.

Explanation
The law is known as The Statute of Frauds.

Explanation
The "parole evidence rule" is a legal principle that states that oral statements cannot be used to modify or contradict the terms of a written contract that is clear and unambiguous. This means that if a contract is clearly written and contains all the necessary terms, any oral statements made before or during the formation of the contract cannot be used to alter or contradict those terms. Therefore, the answer "True" is correct as it accurately reflects the principle of the parole evidence rule.

Explanation
A contract is valid when it contains all the necessary components.

Explanation
A bilateral contract refers to an agreement between two parties where both parties make promises to perform certain actions. In this type of contract, each party has the right to enforce the promises made by the other party. This means that if one party fails to fulfill their promise, the other party can legally hold them accountable and seek remedies. Therefore, the given statement that a bilateral contract is an agreement between two parties where both parties can enforce each other's promises is true.

Explanation
A "unilateral contract" is an agreement in which one party promises to do something only if the other party acts in a certain way.

Explanation
An express contract is an agreement in which the terms and conditions are clearly stated in words, either orally or in writing.

Explanation
This is a description of an executory contract.

Explanation
The statement is true because in real estate, the term "assign" refers to the transfer of one's interest in a property to another party. This means that the original party gives up their rights and obligations related to the property and transfers them to a new party. This can be done through a formal assignment agreement, where the new party assumes all the rights and responsibilities of the original party in relation to the property.

Explanation
A novation is a new contract that is used to extinguish and simultaneously replace one or more persons or conditions in an old contract.

Explanation
The "default" term of a contract refers to a situation where one party fails to fulfill their obligations as outlined in the contract. This is commonly known as a "breach of contract". Therefore, the statement that the "default" term of a contract is also called "breach of contract" is true.

Explanation
Yes. This is called a suit for specific performance.