Text c. Preparing Contracts

Certain contracts are required by law to be in writing. Written contracts include the following:

1. An installment credit or purchase contract.

2. A contract to sell or buy real estate, including buildings, land, mineral rights, and trees.

3. A contract to guarantee the debt of another person in case of default.

4. An agreement to sell personal property valued at over 500 dollars.

5. An agreement that is not to be performed within a year from the date it is made.

Contracts are not required to be written in any particular form. However, to be legal, they should include:

1. The date and place of the agreement.

2. The names and addresses of the parties entering into the agreement.

3. A statement of the purpose.

4. A statement, the amount of money, goods, or services given in consideration of the agreement.

5. The signatures of parties or their legal agents.

6. Signatures of witnesses when required by law or in certain transactions.

Problems result if people enter into an agreement when there is a misunderstanding on the part of one or both parties. Sometimes fraud is involved. In any event, when entering into an important contractual agreement, be extremely cautious in signing contracts. The following suggestions are made for making contracts:

1. When the contract is complex or important, it should be prepared by an attorney.

2. Head the contract carefully before signing. Be sure the terms and

amounts of money listed are accurate.

3. Always get a copy of what you sign with the signature of the other party.

4. Any change made in the terms of the contract should be. signed by both parties.

When a contract is found to be defective, it cannot be enforced.

Such contracts are classified as void and may be broken by either party. A contract may be void under the following conditions:

1. When a contract is made by compulsion through threats or by violence.

2. When terms of the contracts are fraudulent, misrepresenting the actual situation.

3. When a clearly proven mistake has been made.

Notes to the text:

installment (п) - взнос; рассрочка

default (n) - неуплата, неплатеж

fraud (n) - обман, мошенничество

cautius (a) - осторожный, предусмотрительный

void (a) - недействительный

compulsion (n) – принуждение

Exercise 14. Describe the difference.

1) written contract and oral contract

2) competent party and incompetent party

3) formal contract and informal contract

4) public law and private law

5) valid contract and void contract

Exercise 15. Look through Text С concentrating on the beginning of each paragraph and write down a plan.

Exercise 16. Divide Text С into four parts and suggest a title for each.

Exercise 17. Write an abstract of Text С in four sentences.

Part III

Exercise 1. Read Text D and the dialogue which follows it. Study some considerations а buyer of real estate should carefully check.

Text D. Buying a Home

Just about every young family looks forward to buying a home. The purchase of real estate may be the first time you need a lawyer. Many real estate agents encourage the buyer to engage a lawyer to examine the legal papers that are involved in buying real estate. The contract and mortgage papers will need to be examined .Help is needed to determine if the property is free of back taxes. You should ask your lawyer if you and your wife or husband should hold the property you purchase as co-owners. Your lawyer must blow the laws in the state in which you live and can explain the advantages and disadvantages for your transaction.

If you are not married, you may hold property in your own name and have none of the problems of Joint holdings. A lawyer is needed to help you select the type of property holding best for your situation.

Suppose you have decide to buy a home and the real estate agent asks you to make a down payment. Be sure you have a written statement from the seller that the down payment will be returned to you if either of you fail to go through with the deal.

Notes to the text:

mortgage - закладная

down payment - первоначальный платеж