Contract Musts, Express and Implied Contracts, Bilateral and Unilateral Contracts

The general body of law that governs such contract agreements is called contract law.

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Express and Implied Contracts

express contract (also called an express agreement) exists when the parties state the terms and show their intentions in words. [written contract] implied contract, the agreement of the parties is demonstrated by their acts and conduct. [non written contract] In Illinois: The Illinois Frauds Act requires that any contracts for the sale of land, or for leases that will not be fulfilled within one year from the date they are entered into, must be in writing to be enforceable in court. The Real Estate License Act of 2000 also indicates that certain contracts must be in writing, such as employment agreements between sponsoring brokers and their sponsored licensees.

Bilateral and Unilateral Contracts

bilateral contract, both parties promise to do something; one promise is given in exchange for another. A real estate sales contract is a bilateral contract because the seller promises to sell a parcel of real estate and convey property title to the buyer, who in turn promises to pay a certain sum of money for the property. unilateral contract, on the other hand, is a one-sided agreement. One party makes a promise to induce a second party to do something. The second party is not legally obligated to act. However, if the second party does comply, the rst party is then obligated to keep the promise. An option contract to retain one's option to possibly make a purchase later is an example of a unilateral contract. In Illinois, an exclusive right-to-sell listing agreement is considered a bilateral contract. An open listing agreement is a unilateral contract.

Executed and Executory Contracts

executed contract- is one in which all parties have ful lled their promises: the contract has been performed. This sometimes can be confused with the word execute, which refers to the act of signing a contract. executory contract- exists when one or both parties still have an act to perform.

A contract is a voluntary agreement or promise between legally competent parties, supported by legal consideration, to perform (or refrain from performing) some legal act. That definition may be easier to understand if its various parts are examined separately. A contract must:

■ be voluntary ■ be an agreement or a promise—a contract is essentially a legally enforceable promise; ■ be made by legally competent parties—the parties must be viewed by the law as capable of making a legally binding promise; ■ be supported by legal consideration—a contract must be supported by something of value that induces a party to enter into the contract, and that something must be legally suf cient to support a contract; and ■ have to do with a legal act