An addendum, also known as a rider, is a supplemental document added to a primary contract to include additional terms or clarify existing conditions without rewriting the entire original document.
An adult is an individual who has reached the age of majority, which is defined as either 18 or 21 years old, depending on the state. This status grants the legal capacity to enter into binding contracts, including real estate transactions.
Anticipatory breach, also known as anticipatory repudiation, occurs when one party to a contract declares that they have no intention of fulfilling their obligations defined in the contract. This declaration relieves the other parties from any contractual obligations and may allow them to seek remedies.
An assignor is a party who assigns or transfers an agreement or contract to another. This transfer effectively assigns rights or responsibilities from one party to another, creating a new contractual relationship.
A contract under which each party to the agreement promises to perform a certain act or duty. Bilateral contracts are binding promises where both parties require performance—a cooperative and mutual engagement. It contrasts with unilateral contracts, which involve only one party making a promise or taking action.
Capacity of Parties refers to the legal competence of all parties involved in a contract to understand and engage in the agreement. Ensuring that all parties have the full legal capacity is crucial for the contract's enforceability.
A key element for any valid contract in real estate, ensuring that individuals entering into legal agreements are legally capable and have the mental capacity to understand their actions.
Consideration is a fundamental element in contract law that refers to something of value being exchanged between parties when entering into a contract. This exchange can include money, services, products, etc. It is a necessary component for a contract to be deemed valid.
Duress in real estate refers to a situation where an individual is compelled to enter into a contract or agreement due to a threat or coercion, making the contract voidable.
An executed contract is a legal agreement whose terms have been fully fulfilled by all parties involved, signifying the completion of the contract's stipulated obligations.
An express contract is a written agreement that clearly outlines the elements needed for a valid contract and specifies the terms of the agreement. This differs from an implied contract, which is formed based on the actions and circumstances of the parties involved.
An extender clause is a provision in a listing contract that automatically extends the terms of the contract upon expiration. This element can have significant implications for both the agent and the principal involved in the contract.
Good consideration involves a moral or ethical obligation, often seen in cases where the motivation for entering a contract is derived from values like love, affection, or honorable commitment rather than monetary or tangible exchange.
An implied contract is an agreement created by actions of the parties involved, but it is not necessarily spoken or written. Such contracts are legally binding, provided they demonstrate mutual intent and agreement.
An individual who is not legally capable of completing a contract due to mental illness, being a minor, or other factors rendering them incapable. Contracts involving incompetent parties are voidable.
In legal terms, majority refers to the age at which an individual is no longer considered a minor and is fully able to conduct their own affairs. It can also refer to more than half of a group when making collective decisions.
The mutual agreement and understanding between parties regarding the terms and conditions of a contract, ensuring all involved parties share a common interpretation and consensus.
An unintentional error made in preparing a contract; may be corrected by mutual consent of all parties without voiding the contract.
Null and void refers to a term applied to contracts or provisions within contracts that cannot be legally enforced due to non-conformance with the law.
An Obligor is an individual or entity that is legally or contractually bound to provide payment or fulfill an obligation to another party, known as the Obligee.
Offer and acceptance is a fundamental concept in contract law that requires a clear and unequivocal offer by one party and an unambiguous acceptance by the other party, forming a legally binding agreement once acceptance is communicated.
An offeree is the individual or entity that receives an offer or proposal in the context of a contract negotiation. In real estate, this typically refers to the party that receives a purchase or sale offer.
An offeror is an individual or entity that presents or extends an offer to another party in a real estate transaction. This term is crucial in contract law as it denotes the party who initiates the contractual agreement.
An optionor is the party that grants or sells an option contract, giving the buyer the right, but not the obligation, to purchase or sell an asset at a specified price within a set period.
Parol Evidence concerns the use of oral agreements made prior to or at the time of writing a contract. The Parol Evidence Rule states that such oral agreements are generally inadmissible in court to contradict written agreements, except in cases of mistake or fraud.
In contract law, performance refers to the completion of duties and obligations specified in the contract. Proper performance by all parties ensures that contractual objectives are met and can prevent disputes.
Rescission refers to the legal act of canceling or terminating a contract, most often due to issues like fraud, duress, misrepresentation, or mistake. It renders the contract void from the beginning, effectively restoring both parties to the situation they were in before the contract was made.
The phrase 'Time Is of the Essence' in a contract requires that all time-related provisions must be strictly adhered to, emphasizing that any delays could be a breach of contract.
A unilateral contract involves a promise made by one party that is contingent upon the performance of a specific act by another party, without obligating the second party to perform the act.
