Real Contract: A Comprehensive Guide to Its Legal Definition and Applications

Definition & Meaning

A real contract is a type of agreement between parties that involves the transfer of money or property concerning real estate. Unlike simple agreements that require only mutual consent, real contracts necessitate additional actions, such as the lending of money or the delivery of an item. The concept originates from Roman law and encompasses contracts related to both personal and real property. Examples of real contracts include commodatum (a loan for use), depositum (a deposit), mutuum (a loan of money), and pignus (a pledge). These contracts are commonly recognized in civil law and have historical significance in English law as well.

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Legal Use & context

Real contracts are primarily used in civil law jurisdictions and can be relevant in various legal contexts, particularly in real estate transactions. They are essential in establishing rights and obligations between parties, especially when property is involved. Users can find legal forms related to real contracts through platforms like US Legal Forms, which offer templates drafted by attorneys to assist individuals in creating valid agreements.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of real contracts:

Commodatum: A friend lends you their bicycle for a month. This agreement requires you to return the bicycle in its original condition.
Mutuum: You borrow $1,000 from a family member with the promise to repay it within six months.

State-by-state differences

Examples of state differences (not exhaustive):

State	Real Contract Variations
California	Real contracts must be in writing if they involve property transactions over a certain value.
Texas	Specific requirements for the enforceability of real contracts differ based on property type.
New York	Real contracts may require notarization to be enforceable in court.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Description	Key Differences
Real Contract	An agreement involving the transfer of property or money.	Requires additional actions beyond consent.
Simple Contract	An agreement that requires mutual consent.	No transfer of property or money is necessary.
Verbal Contract	An agreement made through spoken communication.	May lack enforceability without written documentation.

Common misunderstandings

What to do if this term applies to you

If you believe you are entering into a real contract, consider the following steps:

Clearly outline the terms of the agreement, including any actions required from both parties.
Use a legal form template from US Legal Forms to ensure your contract meets legal standards.
If the situation is complex or involves significant property, consult a legal professional for advice.

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Quick facts

Typical fees: Varies by state and complexity of the contract.
Jurisdiction: Varies by state law.
Possible penalties: Breach of contract may result in legal action or financial penalties.