Executory Contracts

Front 1

Need for a Writing - Statute of Frauds

Back 1

Anagreement for the purchase and sale of real property must comply with theStatute Of Frauds and must include:

1. Essential Terms (nameof parties, description of property, intent to buy and sell)

2. Signed by Party to be Charged

Front 2

Part Performance or Equitable Estoppel

Back 2

groundsto enforce some oral contracts, but there must be proof of an oral agreement between theparties

Front 3

Other Requirements for an Enforceable K

Back 3

1. Adequateconsideration,

2. Offer,

3. Acceptance,

4. Unconscionability,

5. anticipatory repudiation,

6. breach,

7. warranty, and

8. damages

Front 4

Moran v. Erk - ATTY Approval Contingency in K

Back 4

Where a real estate contractstates that it is “subject to” or “contingent upon” the approval of eachparty’s attorney, that language means what it says: no vest rights are createdby the contract prior to the expiration of the contingency period

- if nofurther limitations on approval appear in the contract’s language, an attorneyfor either party may timely disapprove the contract for any reason or for nostated reason

Front 5

Equitable Conversion

Back 5

Doctrinesplits title to the property between the seller and the buyer the moment thecontract is signed: Seller is still owner of property & retains legal titleto the realty; buyer acquires equitable title

- buyerhas an interest in the property even though the contract hasn’t been fullyperformed

Front 6

Gen. Rule for Equitable Conversion

Back 6

Thebuyer takes on the risks associated with anything that happens during theexecutor period

Front 7

Insurable Interest

Back 7

traditionalinsurance coverage rule: ignore the insurance policy when the contract issilent on whose insurance should cover a loss & permit the seller tocollect insurance proceeds & enforce the contract against the buyer for thefull price

alternative rule: Insuranceproceeds held in trust by seller for buyer & if transaction closes, buyerreceives credit on the price equal to the proceeds minus amount of premiumspaid

Front 8

Holscher v. James - Equitable Conversion

Back 8

- takesplace when a contract for the sale of real property becomes binding on theparties (then purchaser treated in equity as having an interest in realty, andvendor an interest in personalty). - When it applies, purchaser is deemed theequitable owner of the realty, and assumes the risk of loss on the property. Itapplies only if nothing in the contract states otherwise