After the TREC contract is executed, the buyer wants to reduce the purchase price by $5,000 because the home inspection revealed minor issues. The seller agrees. Agent Cooper should:
Correct Answer
B) Prepare a TREC Amendment reflecting the $5,000 price reduction for both parties to sign
A price reduction is a material contract modification that requires a TREC Amendment signed by both parties. This documents the agreed-upon change and ensures both parties are bound by the new terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
More Promulgated Contract Forms Questions
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