Agreements in land transactions are the terms on which a contract is premised. These are the obligations on both parties to the transaction, that is, the buyer and the seller.
In a sales agreement or a deed of assignment, there is no reversionary right on the part of the seller.
Succinctly, ‘a reversionary right’ is the ability of the seller to revoke the interest that was passed to the buyer.
What this means is that, once the interest has passed from the seller and payment (consideration) has been received, the seller cannot revoke the interest so passed.
Flowing from that, a contract of sale of land is an agreement between a buyer and a seller of land stating the considerations, obligations and other terms for the transfer of land ownership.
Where there is a valid contract to buy land, neither of the parties can rescind from the contract. An attempt to do so will amount to a breach of contract which will entitle the other party to claim damages or specific performance through the instrumentality of litigation.
In tandem with that, it should be noted that the validity of Land Agreements is independent on three essential elements:
- The parties,
- The consideration, and
- The terms.
The Parties
The agreement must contain the particulars of the parties (the buyer and the seller).
The Parties could be natural or artificial persons that are known to law.
These parties must be fully described in detail. It should include particulars such as: their full names, their addresses, their statuses, etc.
Although, the description of parties as to their respective status is solely dependent on the nature of the transaction.
The Consideration
The consideration is the benefit that each party gets or expects to get from the contractual deal. For example, the buyer gets the goods, and the seller gets the money. The consideration must be something of value, and it must be bargained for. This means that both parties must have agreed to the consideration in exchange for their respective promises.
The Terms
The terms of the agreement are the specific provisions that govern the relationship between the parties. The terms should be clear and unambiguous, and they should be complete. This means that they should cover all of the important aspects of the transaction, such as the price, the quantity, the delivery date, and the payment terms.
Other Things to Note
In addition to the above, the agreement should also include a few other important clauses, such as a dispute resolution clause and a severability clause. The dispute resolution clause will specify how any disputes arising out of the agreement will be resolved. The severability clause will state that if any provision of the agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
By including all of the above elements, the parties can create a legally binding agreement that will protect their interests.
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