Once the offer has finally been accepted, and the aspirin bottle emptied, a promise is made by the offeree to become liable to the conditions and terms made by the offeror. This acceptance of the offer must be communicated to the offeror. If any aspect of the terms proposed by the offeror are rejected, it now becomes a new offer, or somebody walks away.
For our purposes here, the offer is accepted (yaaay !)
Now comes the contract.
Contracts are either one sided or two sided.
A one sided contract is known as a unilateral contract where one party agrees to make a promise which will induce the second party to respond. The second party in the case of this type of contract is not legally obligated to follow through, however, the first party is obligated keep the promise or promises made in the contract. An example would be something like offering a reward for the return of a lost dog. You'd only have to pay the reward if somebody found the dog.
A two sided contract is known as a bilateral contract. Both parties make a promise to do something and are legally bound by the promises. This is the type of contract we're concerned with here because the seller makes a promise to deliver a title and a parcel of real estate to a ready, willing and able buyer who also promises to deliver money to the seller in return for the seller's promise.
Another example of a bilateral contract would be an exclusive right to sell listing agreement where the brokerage promises to represent the seller and the sale of the home exclusively and the seller agrees not to bring anyone else in to sell the home under the terms of the contract. Only one broker is appointed under the terms of the contract as the seller's only agent. That lone broker is actually given the exclusive right, and the authority, by the seller to place that seller's home on the market. Even if the seller finds a buyer without the broker's help, the seller still has to pay the broker a commission under the terms of this type of contract. The seller makes out better with this type of contract because it gives the broker more freedom to market the house.
The contract between the seller and the buyer should contain language required to make it legally valid so that it may be delivered properly, allowing the parties to the contract to fulfill their promises, transcending from the executory stages to the executed contract whereupon all parties involved in the contract have fulfilled any promises which have been made.
Next : The Written Contract is Delivered Back to the Buyer's Agent
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