What Is a Contract?
A contract is the foundational document of almost all civil law. It is a legally enforceable promise. If one party breaks the promise, the other party can file a civil complaint in court to force them to perform or pay damages.
To be valid in Florida, a contract must contain three essential elements:
- Offer and Acceptance — One party must make a clear offer, and the other party must accept it exactly as written without making changes (if they make changes, it is a counteroffer).
- Competent Parties — The signers must be of legal age (18) and possess the mental capacity to understand what they are signing.
- Consideration — Something of value must be exchanged. You cannot have a contract where one person simply promises to give a gift for free. In real estate, the consideration is the buyer's money traded for the seller's house.
The Statute of Frauds in Real Estate
Normally, a verbal contract (a handshake deal) is perfectly legal in Florida. However, real estate is treated differently. Under the Statute of Frauds, any contract involving the sale of real estate, or any lease lasting longer than one year, must be in writing and signed by the party being sued to be enforceable.
If a seller verbally promises to sell you their house for $500,000, and you shake on it in front of ten witnesses, that contract is completely void. If the seller changes their mind the next day, you cannot sue them for breach of contract because it was never put in writing.
Execution and Enforcement
Once a written real estate contract is fully executed (signed by all parties), the buyer and seller are locked in. The contract will dictate every deadline, how much earnest money must be deposited, and what contingencies allow the parties to escape the deal.
Related Terms
- Consideration — The value exchanged that makes the contract valid
- Breach of Contract — The legal action taken when a party breaks the agreement
- Competent Party — The legal status required to sign the document
Barnes Walker Contract Law
Barnes Walker's attorneys meticulously draft, review, and litigate highly complex commercial and residential real estate contracts, ensuring all statutory requirements are met so our clients' agreements remain fully enforceable in Florida courts. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC