© 2013 All rights reserved.Chapter 5 Part II The Contract of Sale and Leases 1

New York Real Estate for Salespersons, 5th e

By Marcia Darvin Spada Cengage Learning

© 2013 All rights reserved.Chapter 5 Part II The Contract of Sale and Leases 2

Chapter 5

ContractsPart II The Contract of Sale and Leases

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Chapter 5 Key Terms“As is”AssignmentCaveatCaveat emptorContingenciesContractCounterofferEarnest money

deposit

Executed contractExecutory contractForbearanceLiquidated

damagesNovationOffer and

acceptancePower of attorney

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Chapter 5 Key Terms (continued)

ReformationRescissionRiderRight of first

refusal

Specific performance

Statute of FraudsStatute of

LimitationsTime is of the

essenceUniform

commercial code

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Types of Contracts Express vs. implied Bilateral versus unilateral Executed versus executory Valid Enforceable or unenforceable Void or Voidable

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Essentials of A Valid Contract

Mutual Agreement

Mutual Agreement

InWriting

InWriting ConsiderationConsideration

LawfulObjective

LawfulObjective

Competentparties

Competentparties

ValidContract

ValidContract

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Termination or Discharge of Contracts

Agreement of the Parties

Impossibility of Performance

Operation of Law

Full Performance

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Contract RemediesBreach

ofContract

Breachof

Contract

SpecificPerformance

SpecificPerformance

ReformationReformation InjunctionInjunctionLiquidated

Damages

Liquidated

Damages

Compensatory

Damages

Compensatory

DamagesRescissionRescission

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Sales Contracts

Counteroffer

Earnestmoney deposit

Purchase offer

Acceptance

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Possible Contract DisclosuresAgencyRadonLead-based paint Attorney reviewPest inspectionHome inspectionUncapped gas wells

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Other Types of ContractsInstallment sales

Lease with option tobuy

Cooperative contract

Binder-instead of purchase

offer