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Information Corner
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What Is A Contract? A contract is an agreement between at least two parties
with the intention to create a legal relationship. Within
the contract are specified terms and should either party
break these terms then they are in breach of contract. If
one party decides that the breach is important enough then
they can rescind the contract and seek compensation through
the courts. If the courts agree then they will award damages
and maybe costs to the party against whom the breach occurred. Within
the lettings industry a landlord will normally be party
to two contracts. 1.
Landlord and Agent. Important
to note that a contract can be either written or verbal.
Written is obviously the best form so that all parties can
see on paper what they are letting themselves in for. A
classic form of verbal contract is the landlord that agrees
with the tenants to provide them with a washing machine
and then fails to provide the appliance. The tenants can
state that the landlord is in breach of the contract that
was formed prior to moving into the property. Should the
landlord use the services of an agent and the agent tells
the tenants that the landlord will provide a dishwasher
and then fails to inform the landlord of this agreement
then the agent could well be liable as he made the agreement.
I must admit that many agents even today still promise things
to clinch a deal and “forget” to mention it
to the landlord. All
terms of the let should be included in the contract so as
to leave no grey areas. Regardless of how small and trivial
it may seem it is always best to be safe. Contracts
appear in everyday life and we all abide by them or impose them.
For there to be a contract there must be an offer, an acceptance
and consideration. For
example the tenant offers to rent your property, you accept and
the tenant pays the money. The money is the consideration. As
a landlord you will come across statutes or laws which are an
Act of Parliament. No contract can overlook these and they must
be adhered to. The Housing Act of 1988 imposes many statutes on
the landlord and no amount of altering of contracts can over ride
these laws. Above
all always read the contract between you and the agent and between
you and the tenant. No matter how boring or long they are. If
in doubt ask! If you can not get a satisfactory reply either seek
legal advice or drop out of negotiations. |
Tenancy Agreements: |
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