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.
© 2017 realsgestate.com. All Rights reserved. The news contained in this website is for reference and should not be treated as sales material. Users are advised to verify the accuracy from the source and make reference to other sources of market information to obtain an objective view of the property market. realsgestate shall not be liable for any loss for any decision made by users based on information in this website.