Assignment scenario

You work in a real estate agency in your local area.

Task 1: Contracts

Explain contracts to Quentin

(a) Quentin, a work placement student in your office, is helping with the filing of some recent real estate contracts. He asks you what a contract is. Explain the six elements of a contract. Use examples of real estate transactions to illustrate each one.

(b) Using your own words, explain the two requirements for an agreement for the sale and purchase of real estate to be enforceable under section 24 of the Property Law Act 2007.

Explain contracts to Moana

(c) Moana, a young customer, wants to make an offer on James’ property. She has never bought a house before and admits she doesn’t know much about contracts. Explain each of the following to her.

(i) What happens if she changes her mind before her offer is accepted.

(ii) The three ways James can respond when he receives the offer.

(iii) Whether Moana can add new terms to the contract after it has been accepted.

(iv) The legal term used to confirm that the offer has become a contract.

(v) The four ways her contract can be discharged (come to an end). Give a real estate example for each method.