Let`s get back to acceptance. Until now, we have imagined that the person receiving the offer would only have to say yes to establish a contract. This is the ideal case. But what if the person receiving the offer says something other than “yes”? So what`s going on? Maya learns that someone is planning to open a new museum a few blocks from Vista called the Film Museum. Maya thinks Vista`s sales with the nearby museum could be withdrawn. She thinks that moviegoers who visit the museum during the day would like to make a movie in the evening in the beautiful Vista. She agrees to buy Ernesto`s Vista. They enter into a contract that is expected to be concluded in six months to give Maya time to finance it. In the last lesson, we talked about some of the contracts that you will probably find as a real estate agent.
As you will recall, we have said that two people enter into a contract when they agree to take action for each other and intend to make their agreement legally enforceable. The legal harm test shows that if you agree to do something that the law already requires, cannot give a thought. A classic example can illustrate this idea. Bilateral contracts are common in real estate. For example, sales contracts are bilateral agreements. The seller promises to give the buyer a clear and marketable title at any given time, and the buyer agrees to make a certain amount available. The contract requires both parties to meet their obligations. An open offer allows the seller to enter into list agreements with as many agents as he wishes, and no representative has the exclusive right to sell the property on behalf of the seller. If the seller sells the property without the help of a broker, no broker receives a fee. In the case of an open offer, an agent only receives a fee if he is the first agent to produce a sale.
Reflection can also be an agreement to do nothing. Imagine, for example, that Larry has a magnificent view from his south window and looks over Henrietta`s property, which has an uninterrupted expanse of a pretty ridge that feels like the edge of a large poppy field. Because Larry likes the view, he`s offering Henrietta $5,000 if she agrees not to build anything in the poppy field. Larry doesn`t want her to maintain the poppy field. The poppy field is filled with trees and shrubs. He just wants to see a natural view from his south window, the ridge flying off. Henrietta accepts Larry`s offer. Thus, in a hot real estate market, real estate speculators often used order contracts to take advantage of a rapid rise in prices. For example, back to Sue, Willa and Ted. Imagine that Sue, instead of buying a new house, just knew that Willa was willing to pay $270,000 for Ted`s house. Sue under contract with Ted to buy her house for 250,000 $US and transfers their rights to the contract and then willa in exchange for $20,000.
Finally, Willa Sue gives $20,000 for the order and gives Ted $250,000 for the house. Ted must continue the agreement, because his contract did not prohibit the assignment. By assigning her rights to a highly motivated buyer, Sue earned $20,000. The first way is, if the parties agree to each other, to terminate the contract. The second is that the parties fully fulfill their obligations under the contract. The third way arises when unexpected events make it impossible to execute a contract. The fourth way is that legal intervention makes the treaty unenforceable. The fifth route is when a party violates the contract, and a court order discharges the contract, with or without damages.