Our next stop is the list of chords that are the bread and butter of a real estate agent, literally. A listing contract creates an agency relationship between an agent and a seller and authorizes an agent to sell a property in the seller`s name. The list agreement determines how and if a real estate agent is paid. If Terry did not want to pay $200,000 for the house, he would not have agreed to buy it. Similarly, Tanya has to advance $200,000 in cash to keep her house. The possible reasons why Terry and Tanya feel so varied that human experience can offer them. Maybe Terry lived in an apartment next to a drummer, and he enjoys the tranquility of Tanya`s house. Maybe Tanya decided that she was tired of living in a place, and that she wanted to sell her house and travel the world. The possibilities are endless. The essence is that each party believes, for its own reasons, that it is better off if the agreement is reached. The belief that a chord is in your own interest creates a natural power pressure. But once full power occurs and the expectations of the parties are met, the contract executed is “dead” in the sense that no one expects anything to happen further.
If a party were to take legal action against the contract, the court would dismiss the case because the parties had fulfilled all their obligations. The contract no longer governs the behaviour of the parties. Even in the absence of a formal discharge, the contract will be discharged from its completion. The parties are leaving. In the last lesson, we talked about some of the contracts that you will probably find as a real estate agent. As you will recall, we have said that two people enter into a contract when they agree to take action for each other and intend to make their agreement legally enforceable. However, there are less pleasant ways to terminate a contract. A court has the power to terminate a contract if the contract is not entitled or not, as we said in a previous lesson. The offer must also be sincere. The person making the offer must intend to make the offer a legally binding contract.