Invalidating a contract
If there is any doubt in your mind about the capacity of the seller, do some more due diligence.In real estate, this is illustrated by an offer to purchase a property by a buyer and the acceptance of that offer by the owner/seller.The essential point is that only one party is mistaken while the other is not.Since only one party is mistaken, it could lead to an unfair advantage in bargaining power.This could be money, services, or other valuable goods.Love and affection is even an example of consideration in some contracts.The buyer is offering a price with contingencies and the seller is accepting with contingencies.Consideration is anything of legal value offered and exchanged in the contract.
There cannot be fraud, misrepresentation, a mistake, or undue duress on any party to the contract.In real estate, it's called suing for "specific performance." Let's say that a seller and buyer agree on a contract and it's working its way to closing.The seller is approached by another buyer offering a lot more money for the home, so they back out of the deal.Don't go see the judge to get your money back if your written contract with a drug supplier for 100 kilos of cocaine wasn't honored. Not only will you not get any relief, but you'll also likely end up in jail.For real estate, no matter how the contract is worded, if the seller isn't the legal owner, it's not going to work.