A Listing Agreement Before A Buyer Is Found Is An Executory Contract

Now let`s talk about non-negotiable treaties, cancelled contracts and unenforceable treaties. These contracts have characteristics that make them either totally unfeasible or partially enforceable. Imagine Phil having a 15-year-old nephew named Brian. Phil promises Brian that he will pay him $500 if Brian doesn`t smoke until he`s 18. Brian quits smoking, and on his eighteenth birthday, Brian rushes to Uncle Phil to ask for the $500 he promised. Phil pulls his pipe out of his mouth and tells Brian that he owes Brian nothing because the law says that minors can`t smoke. Since the law already required Brian to give up smoking, his admirable reluctance could not be taken into account for the treaty. Poor Brian had to skip the $500 and settle down with a heathy lung and a lesson he had learned. We can enter into a contract in five essential ways. A contract may end in another, less frequent way, but the five we will talk about are the main methods of contract execution. So far, we have talked about the legal effects of a valid and applicable treaty. A valid contract is a contract that contains all the essential elements of a contract: competent parties, offer and acceptance, consideration, mutual agreement, intention to create legal obligations and a legal purpose.

If a seemingly valid contract is not applicable, it is usually due to the absence of one of these elements. As soon as a valid contract comes into force, the law imposes a duty to execute in good faith and the courts can use or enforce it if the parties require it. The full performance of both parties is the best way to terminate a contract. If both parties are fully successful, each party will benefit from the good deal they have done and the parties do not need a court to enforce the treaty. Most contracts end exactly that way – both sides rely on their respective paths and come away happy. An otherwise valid contract may also be invalidated due to a change in the law or a legal situation. Imagine Max making a contract to sell Beth a rare South American monkey and deliver the monkey in 6 months. If, three months after the term of the contract, a law prohibiting the sale of the monkey because it was granted the status of endangered species, the contract became null and void because what was once a legal objective had become illegal as a result of a change in the law. When a party is injured and the party does not break, a court may bring a large number of appeals to the hurtful party or, if necessary, to both parties. The Tribunal`s objective in the application of the remedies is to rebalance the contractual relationship and not to sanction the aggrieved party.

In this lesson, we will talk successively about any type of discharge. But before I do, let me tell you a story. If neither party has started the benefit, then it is easy to consider a discharge by agreement.