Voiding Contracts
Real Estate contracts can become null & void if proven:
1. Incapacity(Void)
-Incompetent
-Minor below the age of 21
-Mentally ill
-Signed by unauthorised person
2. Mistake(Void)
-What was signed must be significantly different from what was agreed
3. Illegality(Void)
-Illegal Contracts(Cash Back,Foreigners buying landed with LDAU approval etc.)
4. Misrepresentation(Voidable)
-Statement was false
-3 Types of Misrepresentation
*Innocent Misrepresentation- Ignorant
Remedy: Rescission(Damages in lieu of Rescission)
**Negligent Misrepresentation- Careless
Remedy: Damages and/or Rescission
***Fraudulent Misrepresentation- Cheating
Remedy: Damages and/or Rescission
5. Duress(Voidable)
-Physical Duress(Life in danger)
-Economic Duress(Economic pressure)
6. Undue Influence(Voidable)
-Getting a person to sign after getting him drunk
1. Incapacity(Void)
-Incompetent
-Minor below the age of 21
-Mentally ill
-Signed by unauthorised person
2. Mistake(Void)
-What was signed must be significantly different from what was agreed
3. Illegality(Void)
-Illegal Contracts(Cash Back,Foreigners buying landed with LDAU approval etc.)
4. Misrepresentation(Voidable)
-Statement was false
-3 Types of Misrepresentation
*Innocent Misrepresentation- Ignorant
Remedy: Rescission(Damages in lieu of Rescission)
**Negligent Misrepresentation- Careless
Remedy: Damages and/or Rescission
***Fraudulent Misrepresentation- Cheating
Remedy: Damages and/or Rescission
5. Duress(Voidable)
-Physical Duress(Life in danger)
-Economic Duress(Economic pressure)
6. Undue Influence(Voidable)
-Getting a person to sign after getting him drunk
Discharge of Contracts
Below are some ways whereby a contract is discharged:
1. Performance- Contract is completed
2. Agreement- When parties agree to end,change,assign or novate a contract
3.Frustration- Something outside the control of both parties happens and makes the situation substantially different from what has been agreed
4. Breach / Forfeiture - Non performance of terms
5. Act of God- Natural Disasters
6. Impossibility of performance- Death of buyer
7. Seller went Bankrupt
*Note that the contract is not discharge if the seller happens to pass away, the buyer is still able to proceed with the purchase provided he is willing to wait.
**Remedies for breach include Damages, Specific performance and Injunction.
-Damages
1. Liquidated damages- amount of damages that were pre-agreed by parties to rescind the contract
2. Unliquidated damages- amount of damages determined by court
-Specific performance
1. Order of court requiring party in breach to perform the contractual obligations
-Injunction
1. Court order to retrain a party from committing breach of contract (E.g. Caveat)
Below are some ways whereby a contract is discharged:
1. Performance- Contract is completed
2. Agreement- When parties agree to end,change,assign or novate a contract
3.Frustration- Something outside the control of both parties happens and makes the situation substantially different from what has been agreed
4. Breach / Forfeiture - Non performance of terms
5. Act of God- Natural Disasters
6. Impossibility of performance- Death of buyer
7. Seller went Bankrupt
*Note that the contract is not discharge if the seller happens to pass away, the buyer is still able to proceed with the purchase provided he is willing to wait.
**Remedies for breach include Damages, Specific performance and Injunction.
-Damages
1. Liquidated damages- amount of damages that were pre-agreed by parties to rescind the contract
2. Unliquidated damages- amount of damages determined by court
-Specific performance
1. Order of court requiring party in breach to perform the contractual obligations
-Injunction
1. Court order to retrain a party from committing breach of contract (E.g. Caveat)
What are these?
Disclaimer Clause: a clause that disclaim one from being sued due to omissions or particular act
Limitation Clause: a clause to limit one's damages
Exclusion Clause: a clause to restrict the rights of the parties to the contract
Indemnity Clause: a clause to indemnify the other party for breach of contract or tort
*Note that an open contract can be changed or modified without mutual consent and a closed contract is the direct opposite.
Disclaimer Clause: a clause that disclaim one from being sued due to omissions or particular act
Limitation Clause: a clause to limit one's damages
Exclusion Clause: a clause to restrict the rights of the parties to the contract
Indemnity Clause: a clause to indemnify the other party for breach of contract or tort
*Note that an open contract can be changed or modified without mutual consent and a closed contract is the direct opposite.
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