NEW YORK REAL ESTATE LIC. COURSE--CONTRACTS UNIT 8

CONTRACT IS A

voluntary agreement between legally competent parties to perform or refrain from performing some legal act, supported by legal consideration

EXPRESS CONTRACT THE

parties state the terms and show their intentions in words. An express contract may be either oral or written

IMPLIED CONTRACT THE

agreement of the parties is demonstrated by their acts and conduct

BILATERAL CONTRACT

both parties promise to perform under and as required by the contract; one promise is given in exchange for another.

UNILATERAL CONTRACT

one-sided agreement whereby one party makes a promise to be kept only if a second party does something. The second party is not legally obligated to act or perform; however, if the second party does comply, the first party must keep the promise IF 2nd par

VOID CONTRACT IS

one that has no legal effect because it does not meet the essential elements of a contract. One of those essential elements is that a contract be for a legal purpose; thus a contract to commit a crime, or to pay interest higher than allowed by usury law,

VOIDABLE CONTRACT IS

one that seems on the surface to be valid but may be voided, or disaffirmed, by one of the parties (e. contract with a minor)

UNENFORCEABLE CONTRACT IS ONE THAT

seems on the surface to be valid; however, neither party can successfully sue the other to force performance (CONTRACT cannot be enforce aftger expiration of limitations)