Your Client, Contracts, and Closing Flashcards
Definition of contract
Agreement between two or more parties that is enforceable by law
Must be between two or more parties
Contract can be written or verbal?
Since 1677, legislation mandates that all Canadian contracts be written
Every valid and enforceable contract must include
Offer and Acceptance
Consideration
Capacity
Consent
Legality
3P’s of Real Estate Contract
Must be included in an offer
Parties
Property
Price
Reasons why true consent may not occur
Misrepresentation
Mistake
Duress
Undue Influence
Privity of Contract
A unique and legally binding relationship which exists between parties to a contract
Parties to a contract can assign these rights to willing outside parties
Term in a real estate contract
Purchase price
possession date
Real Property Report (RPR)
All appliances in working order
Conditions in a Real Estate contract
Clauses in a contract which must be satisfied or waived before the contract becomes firm
Home inspection
Obtaining financing
Conditions precedent
Required to be completed prior to the expiry of the condition date for the contract to be considered enforceable
Conditions subsequent
Conditions that, should they occur, may terminate a contract.
Party A agrees to purchase Party B’s house, subject to being transferred to a new location for work on or before a certain date
Five common methods to end or discharge a contract
Performance
Mutual Agreement
Frustration
Operation of law
Breach
What a party can claim if a breach of contract occurs
Monetary damages
Quantum meruit
Specific performance
Injunction
Three categories of monetary damages
Restitution
Expectation
Reliance
Land use Districts
Residential
Multi-residential
Commercial
Industrial
Agricultural
Special purpose
Joint tenant
Each tenant has an equal share
if a tenant passes, each remaining tenant acquires equal parts of the remaining shares