Real estate principles - Essay Example

of Lecturer 24 June Real e principles There are certain contracts that are established in the acquisition of real estate properties and some of these contracts shall be discussed in this paper. When properties are acquired in real estate, a lawful description of the property is given by the seller to the buyer. As a result of this, it becomes important for the buyer and the seller to enter into contracts that are binding on them. The different types of contracts that shall be discussed in this paper are: Valid, void, voidable, illegal, unenforceable, express, implied, executed, executory, unilateral and bilateral contract.

Valid, void, voidable, illegal and unenforceable contracts are contracts that are based on the perspective of enforceability. Valid contracts are contracts that meet up with all the requirements that have been recommended by law for the validity of a contract. Valid contracts are contracts that a party fulfils a statutory obligation that is binding on the other party. An example of a valid contract is the insurance of one’s life for the benefit of another person. Thus, this insurance of life is a valid contract as it is binding on the third person.

Void contracts are contracts that are lawful and applicable as at the time it was put into law, but was made void due to some reasons like: change of law and performance unfeasibility. When a contract becomes void, it has lost its legality and cannot take effect. An example of a void contract is the scenario that exists when a party, ‘A’ purportedly accepts an offer to purchase a property ‘on-hire-purchase terms’ in which the hire-purchase terms were not agreed. It is the uncertainty in the contract that makes it void.

Voidable contract is a contract that can be made void by one of the parties to the contract. A party that has just been defrauded can set aside the contract and this is when it becomes a voidable contract and the aggrieved time must actually avoid this contract within a reasonable time and before the intervention of the rights of third parties. An example of a voidable contract is when a party, ‘X’ has the aim of deceiving another party, ‘Y’ by falsely claiming that a land is a fertile land, thereby inducing party, ‘Y’ to buy the land for agricultural purposes.

This contract has been entered into by fraud and party, ‘Y’ can decide to make it voidable. Illegal contracts are contracts that do not have any form of legality and are not bound by law. Thus, illegal contract is not qualified to be called a contract as it is not bound by any law and should be called illegal agreement instead. An example of illegal contract as the case may be is an agreement that restrains the freedom of people and it is illegal based on the fact that it does not have any legal basis.

Unenforceable contracts are the contracts that cannot be enforced by law as the name implies. Unenforceable contracts are contracts that could be valid but may not be implemented in the court of law due to some technical errors like: requisite stamp, registration, absence of writing, etc. An example of an unenforceable contract is the scenario that arises when a document that embodies a contract is not duly stamped or under stamped. This contract could be valid, but the fact that it is under stamped means that it cannot be enforced and this is what makes it an unenforceable contract (Roger& Jentz, 209-212) Express and implied contracts are contracts that are based on the standpoint of creation.

Express contracts are contracts that are reached between different parties as a result of written or spoken words. An example of expressed contracts are the telephone conversation that exists between party, A and party B. Party A could tell party B that he wants to sell a house for a particular amount and if there is an agreement reached by the two parties, an express contract could be said to have taken place. Implied contracts are contracts that are implicit in nature and not clearly stated.

Implied contracts are not stated by words, but only by the conduct and acts of the parties involved. An example of implied contract is in the case of bus transportation, when a passenger seats in a bus and pays a particular amount to the bus conductor. A contract is reached between the two parties as a result of the action of the passenger and this is not due to the words of the passenger. Thus, this is a clear case of an implied contract (Roger& Jentz). Executed and executory contracts are contracts that are based on the point of view of the degree of execution or performance.

Executed contracts are contracts that both parties have fulfilled or accomplished the details of the contract. Executed contracts are contracts that the parties have done everything that needs to be done with regards to the contract and there is nothing else that needs to be done. An example of an executed contract is when party X agrees to buy a particular plot of land from party Y, when X pays the price of the land and Y transfers the ownership of the land to party X, then the contract is said to have been executed.

Thus, this is a clear case of an executed contract. An executory contract is a contract in which the parties involved are contracts that both parties have not yet fulfilled the details of the contract. Executory contracts are contracts that the parties have not done everything that needs to be done with regards to the contract and there is still a lot that needs to be done in order to execute the contract. The contract above is executory if X is still contemplating on buying the land, but is still in talks with party Y and this means that the transfer of the ownership of the land by party Y would only be possible if X agrees and pays the agreed price for the plot of land (Roger& Jentz) Unilateral and bilateral contracts are based on the basis of execution.

Unilateral contract is a contract in which one party has fulfilled his own contract obligation before the implementation of the contract or the time that a contract exists between both parties. An example of unilateral contract is in the case of mortgage loan. The creditor has done his part on the basis of the execution of the contract; it is now left for the debtor to repay the loan after a particular amount of time. Bilateral contracts are contracts that both parties are outstanding at the time that the contract came into existence.

An example of bilateral contract is when party A promises to sell his house to party B after one month and party B promises to pay the price of the house on the transfer of ownership of the house. This kind of contract is bilateral as both parties are outstanding at the time of formation of the contract (Roger& Jentz) . Work Cited Miller, Roger LeRoy., & Jentz Gaylord. Business Law Today: The Essentials. New York: Cengage Learning, 2007. Print