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When a breach of contract leads to real estate litigation

On Behalf of | Mar 9, 2017 | Real Estate Disputes |

Contracts are an essential aspect of real estate transactions in Pennsylvania. Because contracts are such a common part of doing business, and are important to the success of a business, it is helpful for business owners and parties engaged in a real estate transaction to understand the basics of how contracts work.

A contract is simply an agreement that creates legally enforceable rights and obligations between the parties. A contract must contain certain elements in order to be enforceable. Although it is possible to create a legally enforceable oral contract, all real estate contracts must be in writing.

It is important that a real estate contract be drafted in such a way that the parties understand their responsibilities to one another and the consequences of violating the contract. A breach of contract can result in significant disruption and harm to a business relationship or a real estate transaction, so it is helpful to understand how to respond to a breach of contract. Depending on the nature of the breach, and the goals of the parties, it may be possible to negotiate a solution. In some situations, however, litigation may be required to enforce a party’s rights under a contract.

Damages for the economic harm suffered because of a contract breach may be available in contract dispute situations. Contract law can be a complex area of the law so it is useful to have trained guidance when drafting, executing and enforcing a real estate contract. When a breach of contract leads to real estate litigation, understanding one’s rights and the available remedies is essential.

Source: Smallbusiness.findlaw.com, “Contract Basics,” Accessed March 4, 2017


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