Contracts
A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.
A valid real estate contract requires five essential elements: competent parties, offer and acceptance (mutual consent), consideration, legal purpose, and proper form (in writing under the Statute of Frauds). A void contract has no legal effect, as with a contract for an illegal purpose. A voidable contract is valid until one party chooses to disaffirm it, as with a contract signed by a minor. An unenforceable contract may be valid but cannot be enforced by a court, as with an oral agreement for the sale of real estate.
Exam Tip
Void = never valid. Voidable = valid until cancelled by the injured party. Unenforceable = valid but the court won't enforce it. Know the difference.
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Contracts
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NY Real Estate Contracts
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