Contracts Lesson One

Learning Objectives Understand expressed and implied contracts. Review the parties to contracts. Become familiar with Bilateral and Unilateral Contracts. Recognize the validity of contracts and learn the difference.

Creation of Contracts Expressed Contracts - Oral Contracts - Written Contracts - Statute of Frauds

Implied Contracts Must Have Performance

SellerBuyer Listing AgreementOfferorOfferee Purchase AgreementOffereeOfferor OptionOptionorOptionee LeaseLessorLessee (landlord)(tenant) DeedGrantorGrantee Conveyance (LA)VendorVendee MortgageMortgageeMortgagor (lender)(borrower) Offeror makes offer Offeree receives offer “ORS” give “EES” receive

Types of Contracts  Bilateral Contracts - One Promise in Exchange for Another - Purchase Agreement Buyer & Seller

Unilateral Contracts Promise in Exchange for Performance Example: Listing Agreement – Seller does not have to pay the Broker. “I will do this if you will do that.”

Validity of Contracts  Valid Contracts  Void Contracts  Voidable Contracts  Unenforceable Contracts