A contract requires more than signatures to be valid. First, there must be a ”meeting of minds” that involves mutual consent, that is, buyers and sellers must agree on the purpose and terms of the contract. In California, the offer and acceptance of the offer is generally evidence of mutual consent. In addition, the parties must replace the ”counterparty,” which is something of value and refers to the property for the purchase price. Finally, the purpose of the treaty must be legitimate and the parties must be competent and legally binding. Although oral contracts may be valid, real estate contracts are only enforceable if they are written. As a general rule, when it comes to real estate, a contract must be written to be valid and enforceable. For example, the seller has no recourse though. B, for example, a seller responds to a buyer`s offer and if the buyer accepts the buyer`s offer, but accepts orally and then returns. To be valid, the contract must be: identify the parties, identify the property, clearly indicate the purchase price, include the consideration and be signed.
The expected value or benefits of each party are taken into account. The seller expects a financial gain, while the buyer expects the property and rights to the property. For example, an insurance broker wants to sell his client list – the real estate agent`s overvalue – for $50,000. The buyer does so in the hope that the customers on the list will continue to use the buyer as an insurance broker. As a general rule, the seller introduces the buyer to the customer and indicates that the buyer is his successor to encourage customers to continue to take out buyer`s insurance. If the seller does not sign foreigners at the goodwill sale, he can simply open a shop across the street and continue to sell insurance. Of course, all existing customers of the company will cross the street and take out insurance from the seller with whom they already have a relationship. The buyer will have purchased goodwill for $50,000, which has been reduced to zero. This is why non-competitive agreements are essential for the sale of goodwill and are also of great importance for sales of hard-selling assets.