Real Estate Contracts Study Guides

Real Estate Contracts Study Guides Real Estate Contracts Study Guides Contract is an offer and acceptance, bound by consideration, between legally competent parties and for a legal purpose. Contracts must be to be valid Voluntary An agreement (promise) competent parties Supported by legal consideration for a legal act if missing any of these elements it is void Unilateral Contract A contract that results when an offer can be accepted only by the offeree's performance. one party has to act one party makes a promise to induce a second party to act. Bilateral Contract A type of contract that arises when a promise is given in exchange for a return promise. 2 parties bound to act. both parties promise to do something. one promise is given in exchange for something Who is bound to act in an option agreement the optionor Executed Contract A contract that has been completely performed by both parties. Executory when one or both parties still have acts to perform while we are waiting for the contract to be executed. Offer and Acceptance Two essential components of a valid contract; a "meeting of the minds." must be in writing due to the statue of frauds must be offered and accepted without any deviation from original. Otherwise this creates a counteroffer and become a new offer. What makes a contract have to be in writing to be considered enforceable statue of frauds