General Contract Law

Question 1

A buyer and a seller signed a sales contract with a definite closing date of May 15. If the buyer needs to move the closing date to June 15, what document would the buyer use to make this change?

Answer 1

Amendment. When added, an amendment changes the original terms of the sales contract. This is unlike an addendum, which may be added without changing other terms already agreed to in the sales contract.

Question 2

What 5 things must a contract be in contract law?

Answer 2

be voluntary—no one may be forced into a contract;

be an agreement or a promise—a contract is essentially a legally enforceable promise;

be made by legally competent parties—the parties must be viewed by the law as capable of making a legally binding promise;

be supported by legal consideration—a contract must be supported by something of value that induces a party to enter into the contract, and that something must be legally sufficient to support a contract; and

have to do with a legal act—no one may legally contract to do something illegal.