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75 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What the essential elements that constitute a valid contract? |
1. Offer 2. Acceptance 3. Consideration 4. Intention to form legal relations 5. Property address 6. Parties' names 7. Price agreed |
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What is an offer and when is it terminated? |
Offeror: Person who gives the offer Offeree: Person who receives the offer Offer must be communicated and conveyed. Invitation-to-treat is not an offer (e.g. Advertisements)
1. Revocation (offeror can revoke before other party's acceptance if there is no consideration) 2. Lapse of time (expires aft deadline) 3. Offer subject to consideration 4. Death (offeror's death) 5. Rejection (includes fresh/counter-offer)Where doe |
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How does the buyer accept the seller's offer (OTP)? |
He/she signs on the Acceptance Copy |
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What is OTP? |
Option to Purchase. Is a contract between 2 parties giving the purchaser the exclusive right (not obligation) to buy the property. During the term of the offer, no-one else can buy or sell the property incld the owner. For acceptance, owner collected an option fee (consideration) whether option is exercised or not. Buyer may exercise his right to buy or sell the right to buy to another person (if there is 'and/or' nominee. If buyer exercises the right, seller is obliged to complete the sale under the predetermined conditions |
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What interest does the buyer have in the property before completion of sale? |
Equitable interest |
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What is consideration in a valid contract? |
Smth legally of value given in return for a promise. Offeree (seller who is the promisor) must give some benefit or suffer some detriment in return.
Consideration not restricted to money - Can be work/services provided
For real property: must be MONETARY
Past consideration is no consideration. A promise w/o consideration is not legally binding. |
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How abt consideration in the event of the property being a gift? |
If gift- given without monetary consideration. Called a gratuitous contract. Must be signed (sign on doc), sealed (Registered with SLA) & delivered (delivered the title) to be valid. |
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How abt consideration in the event of the property being a gift? |
If gift- given without monetary consideration. Called a gratuitous contract. Must be signed (sign on doc), sealed (Registered with SLA) & delivered (delivered the title) to be valid. |
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Will court assume that intention to create legal relations exist?
1. For business/commercial agreements?
2. For social and domestic agreements? |
1. Yes 2. No |
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What happens if the consideration (cheque) issued by the buyer is dishonored (does not go through)? |
1. Treat contract as repudiated by the buyer -> seller need not hold the property for the buyer and can sell it to someone else
2. Affirm the contract by suing buyer for breach of covenant -> breaking buyer's promise of allowing seller to forfeit the option money if he didn't exercise the OTP. |
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What is a stakeholder clause? |
It is a clause to allow someone to hold the consideration money in the meantime before completion of sale. |
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What is a stakeholder? |
Someone holding the consideration money in the meantime before completion of sale. |
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How will the stakeholder money be held? |
1. In Conveyancing Account (Cheque is issued to seller's law firm's name - CVY) -> 2 signatures; buyer and seller's law firms
2. With Singapore Academy of Law (SAL) pending completion of sale |
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Does HDB OTP have stakeholder clause? How about "and/or nominee"? |
No |
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How does the buyer accept the OTP? |
By signing the Acceptance Copy of the OTP. Acceptance must be communicated and conveyed. If conditional - Becomes a counter-offer. |
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What is mode of acceptance? |
Means how and when the acceptance copy is to be delivered to the offeror.
Either delivery by hand or deliver by post. |
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What happens when mode of acceptance is by post? |
"Postal rule of acceptance" applies - acceptance is complete as soon as the letter of acceptance is mailed out, doesn't matter if it reaches the offeror on time or at all.
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How can the "postal rule of acceptance" take effect? |
1. Parties must agree to use this mode 2. Acceptance copy must be posted out before the deadline 3. Or the recipient accepted this mode although agreed on another mode |
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How abt consideration in the event of the property being a gift? |
If gift- given without monetary consideration. Called a gratuitous contract. Must be signed (sign on doc), sealed (Registered with SLA) & delivered (delivered the title) to be valid. |
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Will court assume that intention to create legal relations exist?
1. For business/commercial agreements?
2. For social and domestic agreements? |
1. Yes 2. No |
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What happens if the consideration (cheque) issued by the buyer is dishonored (does not go through)? |
1. Treat contract as repudiated by the buyer -> seller need not hold the property for the buyer and can sell it to someone else
2. Affirm the contract by suing buyer for breach of covenant -> breaking buyer's promise of allowing seller to forfeit the option money if he didn't exercise the OTP. |
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What is a stakeholder clause? |
It is a clause to allow someone to hold the consideration money in the meantime before completion of sale. |
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What is a stakeholder? |
Someone holding the consideration money in the meantime before completion of sale. |
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How will the stakeholder money be held? |
1. In Conveyancing Account (chewiness issued to seller's law firm name - CVY) -> 2 signatures; buyer and seller's law firms
2. With Singapore Academy of Law (SAL) pending completion of sale |
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Does HDB OTP have stakeholder clause? How about "and/or nominee"? |
No |
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How does the buyer accept the OTP? |
By signing the Acceptance Copy of the OTP.
Acceptance must be communicated and conveyed.
If conditional - Becomes a counter-offer. |
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What is mode of acceptance? |
Means how and when the acceptance copy is to be delivered to the offeror.
Either delivery by hand or deliver by post. |
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What happens when mode of acceptance is by post? |
"Postal rule of acceptance" applies - acceptance is complete as soon as the letter of acceptance is mailed out, doesn't matter if it reaches the offeror on time or at all.
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How can the "postal rule of acceptance" take effect? |
1. Parties must agree to use this mode 2. Acceptance copy must be posted out before the deadline 3. Or the recipient accepted this mode although agreed on another mode |
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How abt consideration in the event of the property being a gift? |
If gift- given without monetary consideration. Called a gratuitous contract. Must be signed (sign on doc), sealed (Registered with SLA) & delivered (delivered the title) to be valid. |
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Will court assume that intention to create legal relations exist?
1. For business/commercial agreements?
2. For social and domestic agreements? |
1. Yes 2. No |
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What happens if the consideration (cheque) issued by the buyer is dishonored (does not go through)? |
1. Treat contract as repudiated by the buyer -> seller need not hold the property for the buyer and can sell it to someone else
2. Affirm the contract by suing buyer for breach of covenant -> breaking buyer's promise of allowing seller to forfeit the option money if he didn't exercise the OTP. |
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What is a stakeholder clause? |
It is a clause to allow someone to hold the consideration money in the meantime before completion of sale. |
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What is a stakeholder? |
Someone holding the consideration money in the meantime before completion of sale. |
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How will the stakeholder money be held? |
1. In Conveyancing Account (chewiness issued to seller's law firm name - CVY) -> 2 signatures; buyer and seller's law firms
2. With Singapore Academy of Law (SAL) pending completion of sale |
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Does HDB OTP have stakeholder clause? How about "and/or nominee"? |
No |
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How does the buyer accept the OTP? |
By signing the Acceptance Copy of the OTP.
Acceptance must be communicated and conveyed.
If conditional - Becomes a counter-offer. |
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What is mode of acceptance? |
Means how and when the acceptance copy is to be delivered to the offeror.
Either delivery by hand or deliver by post. |
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What happens when mode of acceptance is by post? |
"Postal rule of acceptance" applies - acceptance is complete as soon as the letter of acceptance is mailed out, doesn't matter if it reaches the offeror on time or at all.
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What is the procedure for sale of completed private property?
Pre-contract stage - Contract stage - Post-contract stage |
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What legal instrument will the seller's lawyer prepare in the post-contract stage? |
Sale & Purchase Agreement |
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Buyer's lawyer will lodge a caveat with which authority to protect the buyer's interest in the contract stage? |
Singapore Land Authority (SLA) |
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Property is sold subject to the buyer's (or purchaser's) solicitors (lawyer) receiving ___ replies to all ____ sent by them to the various relevant competent authorities. |
Satisfactory replies, requisitions |
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What happens if any of the replies are unsatisfactory? |
OTP may be rescinded at purchaser's option and vendor shall refund to the purchaser the deposit and all other monies paid (if any) paid by the purchaser to vendor without any interest, compensation or deductions. |
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If replies to legal requisitions are not received by the date fixed for completion? |
Such replies shall be deemed to be satisfactory. |
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What is a contract? |
It is a binding agreement enforceable by the law.
Can be done verbally, in writing or by conduct.
It is done voluntarily by parties. |
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What is a contract? |
It is a binding agreement enforceable by the law.
Can be done verbally, in writing or by conduct.
It is done voluntarily by parties. |
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Can real estate contracts be done verbally? |
No. For the sale of immovable property, it must be in writing. |
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What are the differences between condition and warranty? |
Condition - Major term in the contract - If breach, party may rescind the contract and/or claim damages
Warranty - Minor term in the contract - If breach, it will not affect the contract but parties can claim damages |
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What are express and implied terms? |
Express term - Terms which parties agreed on, may be written or verbal.
Implied term - They are terms assumed by law |
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What are terms and representations? |
Terms - Details of the contract that set out rights and obligations of parties - Are statements which are actually part of the contract
Representations - Are statements which induce the contract but are not treated as part of it. |
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Does "writing" in real estate contracts need to be done on paper? |
No. It can also be formed from written correspondences (e.g. Email/SMS) |
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What shld parties do if they have no intention to bind each other in email correspondence? |
They should qualify it (include it) with the remark "Subject to Contract" -> implies that both parties have no intention of creating a legal relation at this moment.
Can be use in emails, Letter of Intent for Lease, etc |
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The SG Judiciary is made up of which 2 main courts? |
Supreme Court & State Courts |
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Which court for claims not exceeding $10,000? |
Small Claims Tribunal |
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Magistrate courts for which amt? |
Claims not exceeding $60,000 |
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How about claims more than $60,000 but not exceeding $250,000? |
District Courts |
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High court for which amt? |
Claims above $250,000 |
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What is Privity of Contract? |
Only parties to contract can sue or be sued in the contract.
Only contractual parties can use the contract to sue each other. |
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What is Privity of Estate? |
3rd party whose name is not in contract but has interest in the property and could enforce the terms of the contract. |
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What is the difference between valid and enforceable? |
Valid - contract is recognized under Common Law; completes 4 essential elements and 3Ps for real estate contracts
Enforceable - Means the contract can be presented in court. SG -> written contract must be stamped to be enforceable |
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What are the vitiating factors that allow a person who signed the legal doc to deny it?
Void & Voidable |
Void - Incapacity, mistake, illegality
Voidable - Misrepresentation, Duress, Undue influence |
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What are the differences between Power of Attorney (PoA), Lasting Power of Attorney (LPA) and Will? |
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How is a contract considered voided? |
1. Doc signed is significantly different from what been agreed esp if the mistake affect the value $ of the contract
2. Signer must not have been negligent -> Eg. Must have bothered to read the contract |
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Will the court award specific performance for contracts that provide personal service? |
No. Only damages will be awarded for such contracts |
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What is the remedy of Injunction? |
It is a court order preventing a person from doing a certain act.
To restrain a party from committing a breach of contract. |
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What does LDAU stand for? |
Land Dealings Approval Unit |
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What is misrepresentation? |
It is a wrong statement of fact. Can cause contract to be voidable. Statement of fact does not incld opinion (does not apply to agents & facts of the property) |
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What are the 3 types of misrepresentation? |
1. Innocent - Ignorant - He himself believes it was true
2. Negligent - Careless - Fail to take reasonable care
3. Fraudulent - Lied - Giving false info knowingly |
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What is undue influence? |
Means that the person who enters the contract is under excessive or unfair pressure -> If can prove this, can void the contract |
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Under what circumstances is a contract discharged? |
1. Performance - Contract is performed 2. Agreement - Parties agree to end the contract 3. Frustration - Smth happened that is not within the control of either parties e.g. Gov acquisition 4. Non-performance - Contract shld not be executed due to the terms not being satisfied eg. LDAU's approval 5. Seller bankrupt - Seller becomes bankrupt before completion of the sale 6. Act of God - Force majeure clause due to natural calamity 7. Impossibility of performance - Contract cld not be legally completed e.g. Buyer passed away before legal completion |
7 points |
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Will the contract be discharged upon death of seller?
If seller is willing to wait or not? |
If willing to wait - Able to proceed with purchase aft seller's family has obtained grant of probate or letters of administration
If not the buyer can rescind the contract under impossibility of performance |
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What are the remedies for breach of contract? |
1. Damages 2. Specific Performance 3. Injunction |
3 points |
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What are the 2 kinds of damages? |
1. Liquidated Damages - Amt of damages have been pre-agreed by parties to rescind the contract - can be found in indemnity clause
2. Unliquidated damages - Amt of damages not pre-agreed by parties but determined by court (restitution) |
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What is the remedy of Specific Performance? |
Order of the court requiring party in breach to perform the contractual obligations.
By applying the Doctrine of Promissory Estoppel |
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