Contract law Summary


The important clauses of Contract of Sale are :

By Vendor []

[1] Consideration clause [2] Liquidated damages clause [3] Arbitration of disputes clause [4] All inclusive weasel clause [5] disclosure of facts about property in sale clause.

Reason: In order to facilitate smooth transaction of sale of contract, the above clauses are considered as important.

By Vendee [Success, LLC]

[1] Inspection Contingency [2] Contingency for sale of other property [3] Lead Paint Contingency [4] Arbitration of disputes clause [5] Seller’s disclosure of known defects clause.

Reason: Federal Law provides that buildings that are constructed prior to 1978 must disclose full facts about lead paint. Otherwise, non-disclosure would evoke termination of contract upon inspection of building.   It is important to take note of Latin phrase “caveat emptor”

Important clauses of Commercial Lease:

By Lessor : [Success, LLC]

[1] Premises clause [2] The use clause and exclusive clause [3] Term clause [4] Maintenance, utilities and code compliance [5] Insurance clause

Reason:The above clauses will enable the Lessor to authorize and exercise ownership rights and to safeguard the premises  against any unauthorized occupation and damages/theft.

By Lessee: [XYZ Inc]

[1] Term of lease [2] Security clause [3] Percentage of hike in rent [4] Alterations and repairs [5] Estoppel clause

Reason: Lessor is a real estate company and New York city that never rests for a while and being a busy place of  commercial activities, the value of property will certainly draw exorbitant sums as rent with the passage of time. Considering all the facts and Federal Laws of Real Estate, the compliance with the above clauses  would benefit both Lessor and Lessee.

Important clauses of Construction Contract

By Contractor : Build-it Inc

[1] Break-up of Payment clause  [2] Remedial clause [3] Prevailance of jurisdictional real estate contruction laws [4] Dispute Resolution Clause [5] Review of Progress clause

Reason: Since the process of payment is through CM Inc., Build-it Inc has to ensure that scheduled project is delivered on time and any sort of delay in carrying construction work would further delay release of payment as well in time-schedule of project.

By Owner : Success, LLC

[1] Abidance and compliance of Contract Works Hours and Safety Standards Act Clause  [2] Time for completion of Contract clause [3] Pollution exclusion  clause [4] Indemnification clause [5] Budget.

Reason: Renovation of the building involves heavy work of labor which is time bound and requires safety standards at every phase of renovation.  It is in the interest of both the contractor and owner that schedule of project be completed within time limit in order to extend mutual benefit.References

Roselind Hejl Real Estate Contracts accessed 8th December, 2006

Understanding common commercial lease terms accessed 8 December 2006

Essential terms in a Real Estate Contract accessed 8 December, 2006