contract of sale.docx

Contract of sale

A contract of sale is a legal contract contract an  an exchange of goods, services or property to be exchanged from seller (or vendor) to buyer (or purchaser) for an ag reed upon value in money mone y (or money equivalent) paid or the promise to pay pa y same. It is a specific type of legal contract contract.. An obvious ancient practice of exchange, in many common-law common-law urisdictions  urisdictions it is now governed  by statutory law. !ee commercial law. law. "ontracts for sale involving goods are governed by Article # of the $niform "ommercial "ode in "ode  in most $nited !tates and "anadian "anadian urisdictions  urisdictions,, however in %uebec %uebec such  such contracts are governed by the "ivil "ode of %uebec as a nominate contract in contract in the boo& on the law of obligations.. obligations

'ormal contract by contract by which a seller  agrees  agrees to sell sell and  and a buyer  a buyer  agrees  agrees to buy to buy,, under certain terms and conditions spelled out in writing writing in  in the document document signed  signed by both parties both parties.. An An invoice invoice,, for example, is a contract contract of   of sale sale.. Also called agreement agreement of  of sale, contract for sale, sale, sale agreement, or sale contract.

A sale contract is a written agreement between a buyer bu yer and seller of real estate, setting forth the terms of the sale, and specifying the rights and duties of the parties in the real estate transaction. It will be signed by the buyer bu yer and seller and their witnesses and will become legally binding upon each party. Example

wner A wishes to sell property to uyer . After agreeing on a price, closing date, and a nd other terms of the sale, wner A* A*s attorney prepares a sale contract. It is reviewed and signed by by wner A and uyer . +he parties are now legally bound by the terms of the contract and it will govern the sale transaction. A sale contract is the basis of the real estate transaction, it is in large part the  law the parties agree to bind themselves to. In the event of a dispute in the future, the terms of the real estate will control and define the dispute.

+/0! ' A !A1 "2+/A"+ /eal estate transactions can be complex, with a number of things to consider. The sale contract will obviously set forth the purchase price bu t it will also contain many other  provisions. !ome of these provisions that are commonly found in a sale contract are3

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+he names and addresses of the parties4

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+he address and legal description of the property4

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+he date the contract will close or be finali5ed4

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+he date financing, inspection and other conditions of sale must be completed4

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6hether the buyer will be able to cancel the contract if financing is denied4

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+he amount to be paid at the execution of the contract4

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+he type of inspections to be performed, the time in which they will be performed, and who will pay for the inspection4

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6hether the property is being sold in its present cond ition or whether repairs will be made4

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+he time and method in which the seller will demonstrate good title to the property4

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+he payment of commissions to real estate agents and other third parties4

A sale contract for real estate may contain many terms and clauses that are often not understood  by a person not experienced in real estate transactions. ecause the parties have legally bound themselves to the document, and are subect to being sued if they do not perform their obligations, it is usually recommended that both parties see& the advice of an attorney experienced in real estate law, especially in the case of a private sale. 6hen arranging a mortgage for you, we will require a copy of the sale contract pertaining to your real estate transaction. In addition to the advice given to your /ealtor  and lawyer, we can offer our expertise in regards to the portion of the contract that addresses mortgage financing.

Auction "ommon name for several types of sales where the price is neither set nor arrived at  by negotiation, but is discovered through the process of competitive and open bidding. +he two maor types of auction are (7) 'orward auction in which several buyers bid for one seller8s good(s) and (#) /everse auction in which several sellers bid for one buyer8s order . An auction is complete (and a binding contract is created) when a bid is accepted by the seller or the  buyer (as the case may be). +he internet age has transformed auction into a truly open process in which thousands of goods (from boo&s to ships) and services (from air travel to legal advice) may be offered for  bidding by anyone from anywhere and at any time on websites such as eay.com. Internet auctions are an important aspect of electronic commerce.

I mentioned that auctioneers enter into contracts throughout their careers. 9ere, we explore the three basic types of auction contracts. I*ll tal& about these three contracts in the sequence in which they normally occur. +hese three contracts always involve two of the four parties3 auctioneer, seller, bidder and buyer. 7. +he /ight to sell at auction or "onsignment "ontract3 +his contract is between the auctioneer and seller. It is normally in writing (should always be in writing). +his contract engages the auctioneer to provide certain services, typically including mar&eting, advertising, inventory, arrangement, bid calling and settlement. It requires the seller to provide certain  promises as well, including allowing the property to be sold, providing clear title, etc. #. +he /egistration "ontract3 +his contract is between the auctioneer and the bidders. It typically involves allowing the bidders to participate, and confirming that they agree to the terms and conditions, such as necessary deposits, time of removal, closing date, etc. if they  become a buyer. +he auctioneer (on behalf of the seller) agrees to allow the bidders to  participate and provide the property to the winning bidders on behalf of the seller. +hese types of contracts are often times only oral, but can be in writing.

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+he id calling "ontract3 I discussed bid calling contracts in depth in my  post3 http3;;mi&ebrandlyauctioneer.wordpress.com;# @ It is important to note that at an absolute auction, the seller, upon the opening of the auction, enters into a collateral contract with all the bidders, agreeing to sell to the highest  bidder. In regard to enforceability, oral contracts (not in writing) are almost always fully enforceable in court, although they lac& the written documentation to ma&e enforceability easier. +he one exception is contracts for the purchase of real estate, which must be in writing to be enforceable  per the !tatute of 'rauds. !o, following, !old> at a real estate auction, there is a contract  between the buyer and seller, but not an enforceable one ? that is, not until it is reduced to writing.

Installment purchase

Definition A system by which a buyer pays for a thing in regular installments while enoying the use of it. uring the repayment period, ownership (title) of the item does not pass to the buyer. $pon the full payment of the loan, the title passes to the buyer. Installment buying is a social innovation that expands the economy with additional income. "yrus 0c"ormac& (7B