Sales Contract

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Common Contracts

What is a Contract?

• A voluntary agreement between two or more parties that is legally enforceable

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Objectives

• Common contracts: leases, real property, loan agreements

• Statute of frauds

Elements of a Contract

• Legal purpose

• Offer

• Acceptance

• Consideration

• Capacity

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Leases

• Contract between landlord and tenant

• Rank issues to be negotiated

• Rental rate

• Lease restrictions

Purchase of Real Property

• Multiple agreements

• Liability for hazardous waste

• Importance issues to consider

• Consult a lawyer!

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Loans

• Standard agreements

• Responsibility to read/understand contract language

• Key provisions – Repayment terms

– How money will be received

– Conditions

Statute of Frauds

• Contracts requiring >1 year to perform

• Interests in real property

• Assuming another’s debt

• Sale of goods in excess of $500

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Summary

• Contracts bring predictability, clarity, and accountability

• Negotiate key terms of lease agreements

• Carefully read loan agreements and seek clarification before signing

• Contracts can be written, oral, or implied – Written contract is best practice