Attorney Andre Clark Answers If Real Estate Contracts Can Prevent Disputes Or Litigation

Ray Hrdlicka – Host – Attorneys.Media

“Isn’t a real estate contract supposed to prevent the potential problems that may arise? You can get them sorted out ahead of time.”

Andre Clark – Real Estate Attorney – Los Angeles/San Bernardino County, CA

“Yeah, contracts are aimed to document the agreement between the parties. So, it’s clear, or it should be clear. Who’s responsible for what. But the contract itself doesn’t actually force a human body or corporation to perform according to the contract. So, the contract is a device that you can take the court to say,

‘court, this is our agreement, and they didn’t perform. And that’s why we are here to litigate.’

And there’s all kinds of reasons why people don’t perform. Sometimes people intentionally don’t perform, don’t pay. Sometimes people feel like they’re not responsible for performance because the contract is vague, or performance has been excused. It’s not always a breach for non-performance. And because contracts are often written with a lot of legal jargon, sometimes there is confusion as to the parties of what they even signed up for.

And some, often parties take actions or make decisions without consulting with an attorney first, and thinking they’re right. And then they find out they’re wrong. Once you find out your wrong, you may already be in breach So yes, contracts are intended to keep people out of court and try to mitigate going to court. Some of them have mediation provisions and arbitration provisions.

But at the end of the day, if a person or party or corporation does not want to perform… you… you have to go to court, and you would sue on the contract. It’s much better to have a written contract, than an oral contract, that outlines the terms. I don’t know that was a long way to answer your question. I mean, a short answer to your question is yes. Yes. Contracts are intended to keep people, or hopefully keep people out of court. But not… They don’t always do so.”