3.) A buyer and seller have contracted to sell real estate, but the buyer no longer wishes to purchase the property. If the buyer provides the seller with another ready, willing and able buyer, the latter buyer can be substituted in the place of the former buyer. Actually, the agreement between the seller and the new buyer is a new agreement, but has the effect of releasing the former buyer from obligation to perform under the contract. This substitution of parties is called novation.
If a duty is not performed, it may be discharged, and neither party will be considered to have breached the contract. Parties can discharge their duties by the doctrines of mutual rescission which is a mutual agreement not to perform the contract, impossibility, novation, and frustration.
If these three elements exist, there is a contract. However, a buyer or seller may have certain defenses to the contract which would allow that party to avoid performance of the contract. In addition, all real estate contracts contain conditions which must be either satisfied, excused or waived before the parties have an absolute duty to perform. Finally, once the parties have been deemed to have a duty to perform, that duty must be either performed or discharged in order to avoid liability for breach of the contract. If not, the party could be liable for breach and obtain either monetary damages or equitable (non-monetary) relief. This article discusses these basic contract considerations as they relate specifically to real estate purchase agreements, and provides illustrations of the issues surrounding these considerations.
All contracts begin with an offer. An offer is a commitment communicated to an identified person containing definite terms. The subject matter of an offer must be stated with certainty. For example, a description of the land and the price must be included in an offer for the sale of real estate. Other material terms can be supplied later. Advertisements, however, are usually invitations to deal and are not offers. They are invitations for others to make an offer to the advertiser.
When duress is considered to be a sufficient reason for the breach of a contract? Base your research paper on the real legal case of your choice. Look for unprecedented cases in contract law and share your view on the problem.
As an alternative to damages for breach of a real estate contract, courts have the discretion to award specific performance. Specific performance is the court-ordered performance of each party’s duties under a contract. Courts often award specific performance as an alternative to damages when the subject matter of the contract is unique. This is the case with real estate purchase agreements because each parcel of land is unique. However, courts hesitate to decree specific performance, especially when the results would be oppressive or inequitable. Courts do not often force parties into relationships with each other.
1.) A real estate purchase contract states that the buyer must obtain financing before becoming obligated to tender the purchase price to the seller. If the buyer has acted in good faith and made reasonable, genuine efforts to obtain financing, yet has been unable to do so, the buyer’s duty to tender the purchase price is terminated without liability to the buyer. Whether a party has used reasonable efforts to satisfy the condition, thereby releasing that party from liability, is usually a factual question that is decided on a case by case basis. To protect both parties from having to guess as to what are reasonable efforts, the financing contingency should be spelled out in the contract.
Please direct questions regarding specific state contracts and agreements to the contract manager listed on the contract webpage. Please direct general questions regarding state contracts and agreements to .
The Division of State Purchasing procures state contracts and agreements for commodities and services that are frequently used by multiple state agencies. Active state contracts and agreements are listed below; please visit the page for information about the types of contracts and agreements shown. Use Quick Filters to limit the list to a specific contract/agreement type, or click the Show Search Form Details button in the Search Options dialog box to apply additional filters. Expired state contracts and agreements are listed on the page and can also be viewed by selecting Include Expired Contracts/Agreements in the Search Options dialog box.
As a freelancer, it pays to prepare for the worst when it comes to a client cancelling at short notice. Ensure a contract is in place to protect you from such an eventuality, stipulating exact terms of compensation. You should also research the client’s reputation before starting work, whilst also adhering to the terms of contract from your end.
1.) Buyer and seller agree on a purchase price of $100,000. The purchase price of $100,000 is set forth in the real estate purchase contract. Both parties believe the price of $100,000 accurately reflects the value of the home. After the contract is signed, an appraisal of the home is conducted. The appraisal reveals that the value of the home is $50,000. This is not unconscionable. People are free to make bad deals for themselves; the law does not protect individuals from entering into bad deals. It protects people only from entering into oppressive or truly unfair contracts. Thus, unconscionability is not a valid defense for the buyer in this example.
Without a contract, it is obviously trickier to hold the client accountable for loss of earnings. However, with proof that work was asked for and completed, for example with email agreements or meeting documents, then English Contract Law can still provide you with employee rights.