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Unformatted text preview: s With a Price of $500 or More • Contracts Creating an Interest in Real Estate • Requirements of the Writing Under the Statute of Frauds rog80328_05_c05_089-110.indd 89 10/26/12 5:37 PM Section 5.1 Valid, Voidable, Unenforceable, and Void Agreements CHAPTER 5 A fter determining that an offer and acceptance are valid, and that there is valid consideration, each party to the contract must have the capacity to enter into a binding contract and must give his or her genuine assent to enter into a binding agreement. To put it another way, the parties must fully understand that they are entering into a contract, and they must willingly enter into a contractual relationship with each other. To use a simple example, if Felipe holds a gun on Heather to persuade her to sell him her car, there may be offer, acceptance, and consideration, but the contract is defective due to lack of mutual assent. Heather was not truly agreeing to sell her car; she just wanted to avoid getting shot.
In this chapter we will examine a number of impediments that might invalidate what otherwise appear to be valid contracts...
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