Contracts
A contract is a promise enforceable at law. Essentials: competent parties, mutual assent (offer and acceptance), lawful objective, and consideration. Real estate contracts must satisfy the statute of frauds - written, signed by the party to be charged, and containing the essential terms (parties, property description, price).
Formation and performance
An offer may be revoked before acceptance; a counteroffer terminates the original offer. Acceptance must be unequivocal and communicated. Earnest money is consideration, and its disposition is governed by the contract terms. Contingencies (financing, inspection, appraisal, sale of the buyer's home) must be satisfied or waived within stated deadlines. Time is of the essence only when the contract says so or circumstances imply it.
Remedies and discharge
Breach gives the non-breaching party remedies: damages, specific performance (land is unique), rescission, or liquidated damages. Novation substitutes a new party and releases the original; assignment transfers rights and may leave the assignor liable. The parol evidence rule limits reliance on prior oral agreements when a fully integrated writing exists.
Traps
Confusing an option (the seller must hold the offer open; the buyer purchases the right) with a right of first refusal. Treating a counteroffer as acceptance. Forgetting that a buyer's inspection contingency is a condition, not a promise to perform.
Rule of thumb: offer + acceptance + consideration + capacity + legality + writing = an enforceable real estate contract.