1. South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western Publishing©2002

2. Chapter 7 Contract Law _______________________________________

3. South-Western Publishing©2002 Legally Enforceable Agreement Expressed - declare Implied - created by action Bilateral - promise exchanged for a promise Unilateral - promise exchanged for performance

4. South-Western Publishing©2002 Bilateral and Unilateral Contracts Bilateral ContractUnilateral Contract Promise for PromisePromise for Performance

5. South-Western Publishing©2002 Legal Effect of Contracts Valid - meets all requirements of law. Void - no legal effect & not a contract. Voidable - one party bound but not the other. Unenforceable – may have been valid at an earlier time but now enforcement is barred.

6. South-Western Publishing©2002 Contract Essentials Competent parties Mutual assent Lawful objective Consideration Written

7. South-Western Publishing©2002 Meeting of the Minds Offer Acceptance Counteroffer Offer Acceptance

8. South-Western Publishing©2002 Performance Most contracts are discharged by being fully performed or executed by the contracting parties in accordance with the contract terms.

9. South-Western Publishing©2002 Breach of Contract Partial performance Rescission Money damages Specific performance Liquidated damages Statute of limitations

10. South-Western Publishing©2002 Key Terms Breach of contract Competent party Consideration Contract Counteroffer Duress Fraud Liquidated damages Power of attorney Specific performance Void contract Voidable contract