Deck 7: Contract for Sale

Question 1

What is an equitable remedy?

Answer 1

The sale and purchase of real estate properties is done by referring the contract. All the terms and conditions that are negotiated and finalized at the time of sale and purchase of the real estate property. These negotiated terms and conditions are finalized and stated in the contract.
A contract is a legal enforceable agreement entered between two or more parties. Any sale or purchase of real estate property needs to be done in writing so as to be enforceable under law. Specific performance is a remedy that requires the breaching party to perform the obligations as mentioned in the contract. This means the breaching party has to specifically perform the contract in the same manner in which it was made or based on the precise terms agreed by both the parties to the contract. The remedy of specific performance is an equitable remedy which is provided when the remedy at law would be inadequate. Equitable remedy means a non-monetary remedy provided by the court based on the standards of justice and fairness.
It is to be noted that specific performance can only be ordered by the court and this cannot be sought if its granting would lead to undue hardship to any of the party to the contract. The defendant would be held in contempt by the court unless the specific performance so ordered is performed by the parties to contract.

Question 2

What are the elements of a valid contract?

Answer 2

The sale and purchase of real estate properties is done by referring the contract. All the terms and conditions that are negotiated and finalized at the time of sale and purchase of the real estate property. These negotiated terms and conditions are finalized and stated in the contract.
A contract is a legally enforceable agreement entered between two or more parties. Any sale or purchase of real estate property needs to be done in writing so as to be enforceable under law. The essential elements of contract are stated below:
1. The contract should be in writing to make it enforceable under law.
2. The contract should be signed by the party who has entered into the contract. This would act as a future reference in case of any litigation.
3. All the elements that should be present to make an agreement valid should also be present. This means the agreement should be clearly understood by the parties to the contract, the consideration stated in the contract should be a valid consideration.

Question 3

What is the statute of frauds, and why is it important to contracts for sale?

Answer 3

The sale and purchase of real estate properties is done by referring the contract. All the terms and conditions that are negotiated and finalized at the time of sale and purchase of the real estate property. These negotiated terms and conditions are finalized and stated in the contract.
Statute of Frauds is a collective term which is used to describe various statutes stipulating that no suit or action can be maintained on few classes of contracts unless there is a written memorandum which has been signed by the party to be charged or by any if his authorized agent. The purpose of introduction of this statute is to prevent fraud.
The Statute of Frauds is important to contracts of sale because of the below stated reasons:
1. No banks or other financial institution would lend money unless all the terms of transactions are guided by the Statute of Frauds. The terms and conditions should be clearly mentioned in the contract of sale.
2. The purchaser of the property will not undertake any commitment unless the buyer is sure that the financial institution would support the buyer to pay for the purchase of property.
3. The seller would also be keen to sell its property as early as possible. However, this can be done only when the terms of the contract is clear and the buyer gets financial support from the financial institution.

Question 4

What is specific performance?

Question 5

When are liquidated damages used as a remedy for a breach of a contract of sale?

Question 6

Why is consideration important for a contract?

Question 7

Define mutual agreement.

Question 8

List five items that would make a title unmarketable.

Question 9

What is the implied covenant of marketable title?

Question 10

What are the two steps involved in contracts for sale of land?

Question 11

What is rescission?

Question 12

What is the legal theory behind specific performance and money damages?

Question 13

What is the legal theory behind rescission?

Question 14

What is an offer?

Question 15

When is acceptance?