Understand the essential elements that constitute a valid contract with reference to letter of intent, tenancy agreement, option to purchase (OTP) and sale & purchase (S&P) agreement:
Offer and acceptance (including the 3Ps: Parties, Property, Price)
Form (i.e. deed) or consideration
Capacity of parties (cross-refer to Paper 1, Unit 2.12)
Legality of object
Illustrate the legal effects of valid, void, voidable and unenforceable contracts.
Differentiate between warranty and condition in a contract.
Explain misrepresentation vis-à-vis duty of disclosure (vs. caveat emptor) and its effect on contract.
Name and describe how a contract may be discharged and the remedies available for breach of contract.
Relate the above principles to real estate contracts in respect of (cross-refer to Paper 2, Units 4.2 and 4.3):
When a contract for sale and purchase or for lease is formed
Assignment of contract
What constitutes a breach of condition
What facts/defects ought to be disclosed
What constitutes misrepresentation
When a contract is completed, rescinded or repudiated