Real Estate Terminology

From the Latin barcaniare, ‘to change about’. An arrangement or undertaking negotiated between two or more parties by which the parties accept a mutual undertaking; the terms upon which parties propose to enter into contract. "A bargain is an agreement of two or more persons to exchange promises or to exchange a promise for a performance." American Restatement of Contracts, § 4 (1932). A bargain lies at the foundation of the modern concept of a commercial contract; that is, that someone has entered into a bargain, not a mere expression of intent - "for the intent of man cannot be tried; for the Devil himself knows not the intent of man" Chief Justice Briar, Anon. (1478) Year Book 17 Edw. IV, 1. On the other hand, a bargain does not create a contract without consideration. ‘Bargain’ is used also to refer to a process of haggling; coming to an understanding; the giving of an assurance or pledge; or the purchase of something at a favorable price. A bargain, once reached, is not normally relinquished lightly, even though in reality it be not much more than a gentleman’s agreement: "I'll give thrice so much land to any well-deserving friend; but in the way of a bargain mark ye me; I'll cavil on the ninth part of a hair." William Shakespeare, Henry IV Part II, Act III. See also agreement for sale, earnest money, subject to contract.

Terms in bold are defined elsewhere in the hard copy of the Encyclopedia.