VALID CONTRACTS
Name the most important component of a valid contract.
Offer and Acceptance
Agreement to the exact terms of a contract
Acceptance
Leases over ______ years must be in writing
1 Year
The full fulfillment of all duties, promises, and obligations required under a legally binding contract, in accordance with its specific terms, conditions, and time requirements.
Performance
Requires all deadlines to be met exactly on time
Time is of the essence
Name two other names for offer and acceptance
Mutual Consent
Meeting of the minds
Clearly stated (written or spoken)
Expressed contract
Explicit contract
Why is statute of frauds important?
Any contract to buy or sell property/real estate must be in writing
A written agreement between all parties to a contract in which each party voluntarily agrees to terminate the contract and release the other from any further obligations, liabilities, or legal claims arising from that contract.
Mutual Release
Property must appraise at or above purchase price
Appraisal Contingency Clause
What make a contract voidable
Some subsequent event happens to make the contract voidable.
A contract that is fully performed by all parties.
Executed Contract
Per the statute of frauds name 2 of the four things necessary to make a contract valid.
Hint: here’s one of the four
Price or how to determine the price
Names of the parties
Property description
One party fails to perform
Breach of contract
Liquidated Damages Clause
Something of value can be classified as
Money
Property
Promise
Court forces a party to perform
Specific performance
When is a verbal again to sell land enforceable
Never it involves property/real estate
Contract is canceled and both parties returned to original position
Recission
States whether buyer can transfer contract rights to another party
Assignment Clause
Why are most verbal real estate contracts invalid and unenforceable.
Because the statute of frauds says real estate contracts need to be writing.
Transfer of contracts to another party (original party still liable)
Assignment
A contract includes all necessary components to make it valid. It also includes. The legal description, price for the property and the terms. What is it missing?
No signatures
Property destroyed by fire before closing
Impossibility of Performance
Financing (Mortgage) Contingency Clause