Under Tennessee real estate practice, which of the following is required for a real estate purchase contract to be enforceable against the seller?
Correct Answer
A) The contract must be in writing, signed by the party to be charged, and supported by consideration
Under Tennessee's Statute of Frauds (Tenn. Code Ann. § 29-2-101), contracts for the sale of real property must be in writing and signed by the party to be charged (i.e., the party against whom enforcement is sought) to be enforceable. Additionally, a valid contract requires consideration — something of value exchanged between the parties, such as the purchase price. These three elements — writing, signature, and consideration — are the core enforceability requirements for real estate contracts in Tennessee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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