Termination of Contract by Purchaser 2

How important it is know if you can cancel the contract?

There are many property purchasers who are always in a dilemma when it comes to actually buying a property. There are many concerns that put them in a dilemma and they are:

• Is the property the right one for them?
• Is it going to be fruitful to buy this property?
• Should I buy this one or that one?
• Should I wait a little more or search a little more?

All these and many more questions come into the minds of people. These questions are important and must be asked because buying a property is a huge investment and unless you are 100% sure you must not jump to decisions. This is why many customers try to cancel the contract even though they have signed it. This may be a problem if you had not thought about this scenario in beginning while you were signing the contact.

You must ask your lawyer about the policy about termination of contract by purchaser. You must even ask the seller about the terms and condition that may apply if you at all change your mind and do not want to buy the property any more.

There are many experienced sellers who know about the apprehensions of the buyers and would be prepared to answer each and every question that you ask but also there are many who do not want answer such things and in such cases you must not sign the contract at all. It is your sole decision to buy or not to buy.

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Termination of contract by purchaser.

If (1) the contractor shall (a) become insolvent or bankrupt, or cease, be unable, or admit in writing its inability, to pay its debts as they mature, or make a general assignment for the benefit of, or enter into any composition or arrangement with creditors; or (b) authorize, apply for, or consent to, the appointment of a receiver, trustee or liquidator of the contractor or of a substantial part of its assets, or proceedings seeking such appointment shall be commenced against it; or (c) authorize or take any action under any bankruptcy, reorganization, readjustment of debt, insolvency, dissolution, liquidation or other similar law of any jurisdiction, or proceedings under any such laws shall be instituted against it; or (2) the engineers shall certify to the purchaser that the contractor for any reason is neglecting or is unable to provide equipment, apparatus and/or materials or to perform the work required, is careless or incompetent, is not prosecuting the work with promptness and diligence, or is failing in any way to comply with the contract (including without limitation the specifications or drawings), then the purchaser may, effective upon the mailing of written notice to the contractor to such effect, terminate the contract. In the event of termination the purchaser may, but shall not be obligated to, accept such portions of the equipment, apparatus and/or materials covered by the contract as in the opinion of the engineers may be satisfactorily used on the work and for such portions so accepted the purchaser shall pay the contractor such part of the contract price as in the opinion of the engineers is fair and proper.
The purchaser shall also have the right, but shall not be obligated, to enter into other contracts in order to complete the work according to the specifications and drawings, and the contractorand the contractor shall bear the costs of obtaining proposals and letting contracts for completing the work, the increase in cost, if any, as determined by the engineers, resulting from such procedure, and any damages caused by the delays thus occasioned in completing the work. In the event of termination and the taking over of the completion of the work by the purchaser, the contractor shall be entitled to no further payments under the contract until the work is completed. If the cost to the purchaser of thus completing the work, together with any damages caused by delay, shall exceed the balance due the contractor on account of the contract price, the contractor shall immediately pay the excess amount to the purchaser, but if the balance due on the contract price shall exceed the expense incurred by the purchaser in completing the work, together with any damages for delay, the excess shall be paid by the purchaser to the contractor.