The parties must fully understand the agreement and what is related to it. There is a legal presumption that minors under the age of 18 and the mentally ill are unable to reach an agreement. In the past, in the United States, slaves, married women and convicts were considered incapable of entering into legal agreements. Today, a compulsory sales contract must be concluded by competent adults. If a minor is part of the contract, an adult co-signer is required to assume responsibility for the contract in order to make the contract enforceable. A minor between the ages of 7 and 18 can therefore enter into a contract. However, it is assumed that they do not understand the effects of the contract. This means that the minor remains protected at the expense of the other party. The minor may terminate a contract without cause at any time before the age of 18 and for a reasonable period of time thereafter, the contract being “not valid”. 3. The contract must identify all parties involved.
The contract must also provide the full names of all parties to the purchase of the investment property. In addition, all contracting parties must be legally competent to be enforceable when the contract is concluded. 1. The contract must be written and an offer and acceptance of this offer must be made. For a real estate contract to be legally applicable, it must be written. 1. Offer – One of the parties has promised to take or refrain from taking certain measures in the future. 2. Counterpart – In exchange for the deed or non-action indicated, something valuable was promised. This can take the form of a considerable expenditure of money or effort, a promise to perform some kind of service, an agreement not to do something, or an addiction to promise. The consideration is the value that encourages the parties to enter into the contract.
4. Reciprocity – The contracting parties had a “meeting of minds” on the agreement. This means that the parties have understood and agreed on the basic content and terms of the contract. There are seven basic conditions imposed by law, which must be in place to validate a real estate contract. If all these requirements are met, the contract is considered valid and legally enforceable.