A buyer and a seller sit at a kitchen table and verbally state to each other: the seller will convey 123 Main Street and the buyer will pay $400,000, with closing in thirty days. They shake hands. Several days later they sit down again, type those same terms onto a printed purchase agreement, and both sign it. The Statute of Frauds will affect whether the early oral version is enforceable, but as a matter of contract classification both versions share one defining characteristic — the parties communicated their full bargain in language. Which type of contract describes both versions?
Correct Answer
D) Express contract
The kitchen-table agreement and the later signed document share one feature: the parties communicated their entire bargain through actual language (spoken or typed). A contract whose terms are conveyed in language — oral or written — is an express contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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