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Simple English definitions for legal terms
guaranteed-sale contract
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A quick definition of guaranteed-sale contract:
A guaranteed-sale contract is an agreement between two or more parties that creates enforceable obligations. It can be a written document or a verbal agreement. The contract promises that a certain item or property will be sold within a specific time frame, and if it is not sold, the seller will buy it themselves. This type of contract is often used in real estate transactions.
A more thorough explanation:
A guaranteed-sale contract is a type of contract that creates enforceable obligations between two or more parties. It is a written agreement that sets forth the terms and conditions of the contract.
For example, a real estate agent may offer a guaranteed-sale contract to a homeowner who wants to sell their property quickly. The contract may state that the agent guarantees to sell the property within a certain timeframe or else they will buy the property themselves at a predetermined price.
This type of contract illustrates the definition of a contract as an agreement that creates legal obligations between parties. In this case, the real estate agent and homeowner are both bound by the terms of the contract and have legal remedies if the other party fails to fulfill their obligations.