Chapter 11 & 12

Question 1

Requirements of writing land contracts in COMMON LAW

Answer 1

Contracts do not have to be written to be enforceable.

Harder to prove if not written …

Question 2

Requirements of writing land contracts in STATUE LAW

Answer 2

Law and Equity Act: must be written to be enforceable

Real Estate Services Act:
- written service agreement to be signed
- Section 43 required brokerage to have service agreement (unless waived by client)
- Section 59 states contracts dealing with real estate must be in writing in order to be enforceable

Question 3

What makes a real estate contract enforceable?

Answer 3

1) Must be in writing and signed
2) Parties must have acted in a way to uphold the contract
3) Parties have relied upon the contract
4) Incomplete contracts may be enforced

Question 4

CONDITION vs WARRANTY

Answer 4

Condition: a fundamental term of a contract, and in a breach, it allows the injured party to terminate the contract, sue for damages or specific performance.

Warranty: a subsidiary term of a contract, and in a breach, it does NOT allow the injured party to terminate the contract. Only to sue for damages only.

eg. “The seller warrants the roof is in excellent condition”

Question 4

CONDITIONS PRECEDENT

Answer 4

I.E. “subject to” clause

Calls for the happening of some event/performance of sonme act before the contract shall be binding

Question 4

Requirements of a contract

Answer 4

1) Offer
2) Acceptance
3) Consideration

Question 5

How to remove a condition precedent

Answer 5

Party must deliver written notice to every other party on or before the subject removal deadline.

Question 6

“Norfold & Aikens” case importance

Answer 6

Provision that changed the standard form contract of purchase and sale to allow the registration and transfer and mortgage documents to take place on the basis of exchanged conveyancers’ undertakings.

Question 7

Most relevant provisions in COMPETITION ACT for licensees

Answer 7

Agreements in restraint of trade (sections 45 and 90.01).

Misleading advertising (sections 52 and 74.01)

Question 8

AGENCY

Answer 8

A relationship in which one person (agent) is granted authority to represent and act for another person (principal) in dealings with others.

Question 9

Exception for dual-agency

Answer 9

Must be in a remote location that is under-served by licensees and it is impracticable for the parties to be provided trading services by different licensees.

Question 10

Types of AGENCY AUTHORITY

Answer 10

1) Express authority: i.e. listing contract signed between client and agent

2) Implied authority: established from actions/conducts of both parties

3) Agency by Estoppel: aka apparent authority; principal acts in a way that third party believes Agent has authority