Contract

  • In Lettings this is a tenancy, commonly called an agreement and most often an AST – but not always.
  • A contract can created verbally, in writing, or by conduct indicating a contract and a combination of these.
  • To be valid, a contract must include three core elements:
    • Offer – must be unconditional.
    • Acceptance – “Yes! I agree.”
    • Consideration – money or money’s worth.
      • When all three are present an agreement exists.
      • A counter-offer eliminates any previous offer.
      • What constitutes each element is debatable.
      • What can appear to be an offer might be merely an invitation to treat – window and web adverts.
    • In addition, to be valid the parties must:
    • have the legal capacity to enter a contract – e.g aged over 16 etc.
    • intend to enter a legally binding contract.
  • Ending a contract: (mnemonic P-FAB – Think of pre-fab)
    • Performance – when the contract term ends.
    • Frustration of the contract due to uncontrollable events such as fire, flood, storm-damage etc.
    • Agreement by the parties – mutually
    • Breach – when either party fails to perform a core obligation.
  • A tenancy contract to rent must include details of the3Ps:
    • Property  – address
    • Price       – rent
    • Parties    – landlord, tenants and any agent.
  • Remedies for breach of contract include SID:
    • Specific performance – enable the tenant to rent
    • Injunction – prevent the mischief causing the breach
    • Damages – compensate the tenant for non performance.

What are your thoughts?

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