Under the TREC Farm and Ranch Contract, the sale includes crops growing on the property. If the contract does not specify how growing crops will be handled, what is the default treatment?
Correct Answer
C) The contract addresses whether growing crops are included or excluded from the sale
The TREC Farm and Ranch Contract includes specific provisions addressing crops. The parties must specify in the contract whether growing crops are included in the sale. The form provides checkboxes and blanks to address this issue.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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