Which type of parties must be competent for a real estate contract to be enforceable?

For a real estate contract to be enforceable, it is essential that all parties involved are competent. Competence in this context refers to the legal capacity to enter into a contract. This means that each party must be at least of legal age (usually 18 years or older), mentally competent, and not under duress or undue influence at the time of making the agreement.

If any party lacks capacity, such as through a mental impairment or being a minor, the contract may be void or voidable, rendering it unenforceable. Therefore, ensuring that all parties possess the necessary competence guarantees that the contract is valid and that all parties can uphold their legal rights and obligations as outlined in the agreement. This principle helps to maintain the integrity of contractual agreements in the real estate industry, providing security and certainty for all stakeholders involved.

Understanding that both individuals and legal entities (such as corporations) also need to meet these criteria reinforces the notion that every participant's ability to contract is crucial for valid agreements. Thus, making sure that all parties are competent is vital for enforceability.