PRICE
– STANDARD CONTRACT
As
in a typical standard contract:
PRICE:
The price is set out in the schedule. It must be certain as
consideration is an essential term of the contract. For example,
“Agreed price is $200 000 payable as 10% deposit and the balance
over 5 years” is void because of uncertainty. That is, how the
balance is to be paid is not specified, for example, does it mean
yearly or monthly? If interest was to be charged, it should have been
stated. However, for a rural property “$1000 per hectare” is
valid consideration where the area of the property is expressly
stated elsewhere in the contract. If the area was not stated in the
contract, consideration would be uncertain and there would be no
contract.
Typically,
10% deposit is paid on contract and the balance at settlement. The
deposit is held in the agent’s trust account.