Contract Paper

Contract Paper

Law /575

In today’s society it is very important when conducting any type of transaction, whether its business, monetary, or property you should always protect yourself and or investment at all times. Many people do not ever anticipate having any issues with friends, family or business counterparts. At the end of the day we all should learn to keep business and personal dealings separate by knowing when and how to document the transaction to avoid any misunderstandings, communication or loss.

In reading the scenario Paul and Priscilla Peterson did have a valid contract. According to chapter 13 a contract is defined as a” promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some ways recognizes a duty” The elements of a contract are acceptance, consideration and contractual capacity. As the offeror Danny offered Paul and Priscilla to purchase a single-family home for $250,000. Paul and Priscilla would be considered the offerees. The offer and acceptance together would constitute the agreement which is the first element of a contract. It is implied that Paul and Priscilla accepted his offer by moving in and making renovations to the home by adding tile, landscaping and changing out the tub.

Unfortunately, Paul and Priscilla may not be able to prove a breach of contract due to their contract lacking proper form. Even though its implied that Paul and Priscilla agreed to purchase the home implied-in-fact contracts do not apply to contracts involving real estate. Contracts involving real estate purchases or the contract of sale should be in proper form by being in written form, containing terms and conditions of the sale and clearly communicate whether or not there are any known issues with the home or the property. The terms and conditions of a purchase agreement would have the parties agree to the prices, the date the sale would be finalized. Normally, an itemized list of...