The consideration can be valuable to everything a person does or gives, including personal services. Remember the exclusive right to sell agreements from the last lesson. In these agreements, a seller gives a broker the exclusive right to sell a property and agrees to pay a fee to the broker if the property is sold, even if the seller – not the broker – finds the buyer. What consideration does the agent provide in this case? Can`t the agent sit back and wait for the seller to sell the house? An illegal goal may be a little more difficult to identify, but it can still invalidate a contract. Imagine Tanya was a tenant. She didn`t own the house, but she offered to sell it to Terry. In this case, the agreement between Terry and Tanya would be invalid if they did so because it is not legal to sell another person`s property without their permission. If Terry attempted to sue Tanya for breach of contract, the court would not enforce the contract or pay damages, as it was an inconclusive contract. Terry might have a separate fraud complaint against Tanya, but that`s another story.
Let`s see a concrete example of Diek in action. Suppose I said to you, “I will give you my watch for free one day.” Even if you said, “OK,” there would be no reflection, because I did not ask you to do anything in exchange for the watch. All you can do is wait patiently and hope that one day I will give you my watch. Regardless, my offer to give you the watch is an unworkable promise. As a general rule, it is easy to recognize executed contracts and execution contracts. But sometimes, especially in real estate, it might be more difficult to make the right distinction. Ideally, the offer should clarify the most important terms of the offer so that the other person can accept them by saying, “Yes, I agree.” A simple example makes this concept easy to understand. Suppose I said, “Would you like to buy my watch?” If you were interested, your first question would probably be, “Maybe.
How much do you want for that? You probably won`t say “yes” until you know what I want in the exchange. My offer was not clear enough because you need more information to decide if you want to accept. Time is essential because it is an important lever in a real estate purchase contract, because without this clause, time – well – is not essential. Consider the following story. Charlie agrees to buy Lucy`s house, and the contract says the closure will take place on September 12. The deadline is approaching and Charlie calls Lucy and says he`s not quite ready yet. There`s a problem with the loan and it`s going to take him a few more days. Lucy says, “Okay.” They are planning a new closure by September 19.
Just before the new closure, Charlie calls back and tells Lucy that he only needs a few days. What can Lucy do? If the contract does not contain a “time is essential” clause, Lucy may not do much except wait patiently. Although the contract set a date for the conclusion, the contract did not say that the date was important.