April 15, 2021 by MMinspect
Contracts are at the heart of real estate transactions. At every stage of the process, from list agreements to sales contracts, notes to order and mortgage documents, contracts play a crucial role in real estate. A contract in which each party promises to perform an act in exchange for the promise of the other party. An illegal goal may be a little more difficult to identify, but it can still invalidate a contract. Imagine Tanya was a tenant. She didn`t own the house, but she offered to sell it to Terry. In this case, the agreement between Terry and Tanya would be invalid if they did so because it is not legal to sell another person`s property without their permission. If Terry attempted to sue Tanya for breach of contract, the court would not enforce the contract or pay damages, as it was an inconclusive contract. Terry might have a separate fraud complaint against Tanya, but that`s another story.
Another common example of real estate transfers is when lenders allocate mortgage income streams to third parties. The practice is so common that final documents explicitly mention the problem and buyers often receive transfer notifications shortly after closing – except at the time of closing itself. Debt-backed income streams are often grouped into investment vehicles called mortgage-backed securities. Suppose Terry broke his contract by not seeking financing, and Tanya sold the house to someone else for $180,000. If Terry had played as he had promised, Tanya would have earned $200,000 from the sale of her house. From Tanya`s perspective, Terry`s injury caused her to lose $20,000. The sale of his home earned him $20,000 less than expected based on his agreement with Terry. Tanya could sue Terry and ask the court to charge him $20,000 in damages, which would put her in the financial position she would have been in if Terry had happened.
Their expectations of $200,000 from the sale of their home would then be met. Although a court grants other types of facilitation in a contractual case, waiting damages are the beating heart of contractual remedies, and the court`s objective is to ensure that the non-injurious party receives the expected benefits of the contract. A unilateral contract includes a promise of execution (option contract), while a bilateral contract includes reciprocal commitments (as in a sales contract). Let`s go around our checklist. Both Bill and Suzy have the legal capacity. They negotiated their agreement and arrived after a process of offer, counter-offer and conditions of acceptance. There is clearly some consideration because Bill agreed to offer Sally a very personal service, and Sally agreed to pay Bill $US 100,000. Based on our discussion, Bill and Sally seem to have all the essential elements of a valid contract. However, Bill will not be able to ask a court to charge Sally, because the courts will not enforce a contract for an illegal purpose. Killing a person for money is not a legal goal.
Hitmen can`t go to court to enforce their contracts.
