Potential Contractual Defects In Realty: Legal Standing and Options
In a scenario in which a homeowner and buyer had made a contract to sell a plot of land, the homeowner does not have the option to rescind the offer if a larger one is made. Once the land was offered at one price and then accepted by the buyer, it becomes a contract. Moreover, a bilateral contract that comes into existence at the moment promises are exchanged. (Miller and Hollowell, 2011) Once both parties agreed and came under contract, neither one can pull out unless they have legal ability to do so.
In the same scenario of a purchase of land, if a typo occurred on the pricing of the house, could the buyer be held at the higher price? The answer would be no. Even if the buyer himself made the error, there is still the matter of intent and object theory of contracts. One could also argue that the contract was enforceable due to the contract be unconscionable. “In cases were consideration is grossly inadequate, the courts may declare the contract unenforceable on the grounds that it is unconscionable, that is, generally speaking, it is so one sided under the circumstances as to be fair” (Miller and Hollowell, 2011). If the price was in excess of fair market value, paired with questionable intent on the seller’s part, no court would ever enforce a type on price. Although there is a chance that courts may take the viewpoint of in signing the document, it’s entirety was agreed upon. If the seller would have reviewed the documents carefully and with due diligence, the error would have been discovered before signing. The rule of law would depend greatly on the impact and height of the mistaked.
Miller, R & Hollowell, W (2011) Business Law. Text and Exercises. 6th Edition