Expressed Contract
An expressed contract in real estate is a legally binding agreement between parties that is explicitly stated, either orally or in writing, and outlines the terms and conditions of their mutual obligations. In the context of real estate, an expressed contract governs various transactions, including sales, leases, property management agreements, and construction contracts.
Key aspects of an expressed contract in real estate include:
1. Clear Terms and Conditions: An expressed contract clearly defines the rights, duties, and responsibilities of each party involved in the transaction. It outlines essential details such as the property’s description, purchase price or rental amount, payment terms, duration of the agreement, and any specific provisions or conditions agreed upon by the parties.
2. Mutual Agreement: An expressed contract requires mutual assent or agreement between the parties involved, often achieved through negotiation and communication. Both parties must fully understand and consent to the terms of the contract for it to be legally enforceable.
3. Written or Oral Form: Expressed contracts can be written or oral, depending on the nature of the agreement and applicable legal requirements. While written contracts offer greater clarity and evidentiary support, oral contracts may also be legally enforceable under certain circumstances, though they are subject to potential disputes over terms and interpretation.
4. Enforceability: Expressed contracts are legally enforceable, meaning that parties can seek remedies through the legal system if the other party breaches or fails to fulfill their obligations under the contract. Courts may enforce expressed contracts by awarding damages, specific performance, or other remedies to the aggrieved party.
5. Statute of Frauds: Some real estate transactions, such as the sale of land or leases for a duration beyond a certain period, may be subject to the statute of frauds, which requires certain contracts to be in writing to be enforceable. Expressed contracts for these types of transactions must meet the statutory requirements to be valid and enforceable.
6. Customization and Specificity: Expressed contracts allow parties to tailor the terms and conditions to their specific needs and preferences. This customization ensures that the contract accurately reflects the intentions and agreements of the parties, reducing the likelihood of misunderstandings or disputes.
Overall, expressed contracts serve as the foundation for real estate transactions, providing legal certainty and protection for parties involved in buying, selling, leasing, or managing real property. By clearly documenting their agreements in expressed contracts, parties can establish rights and obligations, mitigate risks, and facilitate smooth and successful real estate transactions.
