Contract
- In Lettings this is a tenancy, commonly called an agreement and most often an AST - but not always.
- A contract can created verbally, in writing, or by conduct indicating a contract and a combination of these.
- To be valid, a contract must include three core elements:
- Offer - must be unconditional.
- Acceptance - "Yes! I agree."
- Consideration - money or money's worth.
- When all three are present an agreement exists.
- A counter-offer eliminates any previous offer.
- What constitutes each element is debatable.
- What can appear to be an offer might be merely an invitation to treat - window and web adverts.
- In addition, to be valid the parties must:
- have the legal capacity to enter a contract - e.g aged over 16 etc.
- intend to enter a legally binding contract.
- Ending a contract: (mnemonic P-FAB - Think of pre-fab)
- Performance - when the contract term ends.
- Frustration of the contract due to uncontrollable events such as fire, flood, storm-damage etc.
- Agreement by the parties - mutually
- Breach - when either party fails to perform a core obligation.
- A tenancy contract to rent must include details of the3Ps:
- Property - address
- Price - rent
- Parties - landlord, tenants and any agent.
- Remedies for breach of contract include SID:
- Specific performance - enable the tenant to rent
- Injunction - prevent the mischief causing the breach
- Damages - compensate the tenant for non performance.
Published: 5 November 2013 Last Updated: 17 November 2021