Subject to Contract | Conditional Contract

Subject to Contract (STC) Words used, primarily in English law to indicate that something set down in writing is not intended to commit the writer until a binding and concise form of contract is entered into. “The matter remains in negotiation until a formal contract is settled and formal contracts are exchanged”, Keppel v Wheeler [1927] 1 KB 577, 584 (CA) (Winn v Bull (1877) 7 Ch D 29; Law v Jones [1974] Ch 112, [1973] 2 All ER 437 (CA); Eccles v Bryant and Pollock [1947] 2 All ER 865, … [Read more...]

Option Agreement and Conditional Contract | What is the difference?

Option Agreement and Conditional Contract, Defined And Distinguished An option is a choice available to one party, a conditional contract depends on an external event. An option is a  right to do or not to do something, such as a right to accept or reject an offer within a specified or reasonable period of time. An option provides a right, but not an obligation, to carry out a specific action upon agreed terms, usually a right to buy at a given (or determinable) price within an agreed period … [Read more...]

Rectification | Is The Correction of Error or Mistake

rectification 1. Derived from the Latin rectificare, ‘to put right’. The act of putting something right that was made faulty inadvertently or by accident. The correction of something, as a matter of discretion, that is erroneous or doubtful. For example, the correction of a document when the parties to an agreement realize that it does not state what they had intended; usually due to a mistake or a clerical error. Rectification not a new document Rectification of a document does not create a … [Read more...]

Email Legally Binding | Writing Sale of Land

When is an Email Legally Binding? Most contracts for the sale of land must be in Writing. So when is an email legally binding? In English statute law, ‘writing’ is defined to include “typing, printing, lithography, photography, and other modes of representing or reproducing words in visible form”, Interpretation Act 1978, Sch. 1. (Under this definition strictly an electronic document is not ‘writing’.) A requirement that estates or interests in land should be created or transferred in … [Read more...]

Implied Terms in Contract Law | Express Terms vs Implied Terms

Implied Terms in Contract Law Implied terms in contract law (or implied conditions) are those terms that, although not expressed, may be read into the contract if it would be reasonable to do so in order to give effect to the true intention of the parties. A term or condition that must be read into a contract if the intention of parties is not to be defeated; usually because it is inherent in the nature of the contract, or so obvious that it ‘goes without saying’. (‘Terms and conditions’ are … [Read more...]

Act of God | Event of Natural Consequence

An Act of God A sudden or extraordinary act arising directly and exclusively from natural causes An act that does not arise from any human agency and cannot reasonably be foreseen or controlled by man. “something in opposition to the act of man”, Forward v Pittard (1785) 1 Term Rep 27, 99 Eng Rep 953, 956 (Watts v. Smith, 226 A.2d 160, 162 (DC Ct App 1967)). An act of God includes such activities as an earthquake, hurricane or tornado, lightning, volcanic eruption, extraordinary floods, severe … [Read more...]

Consideration in contract law | What is Consideration?

Consideration in contract law - Defined A reward or payment. A benefit given by one party or a detriment suffered by the other party to a contract. Consideration in contract law is the legal motive, cause or reason for a contract; the quid pro quo. The common law requires that a contract should comprise more than an undertaking by one party to another; a bargain when struck should have a motivating reason that goes beyond a moral duty. Thus, a voluntary courtesy or a moral obligation, as a … [Read more...]

Time, start and end | Day, week, month, year

Time start and end Time is a measure of change. Time may be defined as "a measure of change; the relative occurrence, or reoccurrence, of something. The period during which an event happens. A period of existence. The instant at which an event takes place, or should take place. The moment stipulated for a condition to occur", Encyclopedia of Real Estate Terms, Third Edition. This change in time, start and end,  can be measured in seconds, minutes, hours, days, weeks, months, years or … [Read more...]

Procuring Cause | Which Agent is the Effective Cause

Procuring Cause Explained Also called the effective cause, especially in the UK. The act or process by which an agent or broker finds a party who carries a transaction through to the stage required by the principal. In order to be the procuring cause or 'effective cause' of a transaction, the agent or broker must be the party that is responsible for bringing about the transaction for which a fee has been agreed; in other words, that transaction would not have occurred without the broker’s … [Read more...]

Force Majeure | Force Majeure Superior Force But Not Act Of God

Force Majeure and Act of God Force majeure and Act of God are similar and  both can bring a contract or obligation (including in rare cases a lease) to an end. Force majeure literally means a ‘superior force’. A term that is used more in civil or French law, as well as in insurance, to refer to a physical or material act that is uncontrollable or beyond human capacity to prevent, such as lightning, storms, earthquake, or sudden death (Lehman, Stern & Co. v. Morgan’s Louisiana & T. R. … [Read more...]