Results 1 to 6 of 6

Thread: breach of contract process

  1. #1
    New Member
    Join Date
    Aug 2011
    Location
    PMB
    Posts
    8
    Thanks
    15
    Thanked 0 Times in 0 Posts

    breach of contract process

    i sold a property a year ago and the purchaser hasn't paid some tranfer fees despite several notices of payment. i want to cancel the sale. the property is not registered to him name yet. what are the processes of claiming legal costs and damages? do i have to go to court to do so?

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,479
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    You require an attorney to get involved, and read the OTP (Offer to Purchase). This dictates what you can and can not do.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  3. Thanks given for this post:

    lungz (31-Aug-11)

  4. #3
    New Member
    Join Date
    Aug 2011
    Location
    PMB
    Posts
    8
    Thanks
    15
    Thanked 0 Times in 0 Posts
    okay it says the "defaulting party is not entitled to any refund of any moneys paid...and all the monies paid on that date (cancellation date) shall be forfeited in favour of the innocent party being a reasonable and fair amount of the estimated damage suffered by the innocent party through the breach."

    I have an attorney. I'm assuming I do not have to go to court for any claims then...?

    thanx for the input.

  5. #4
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,479
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    Yes, but what are the Clauses referring to the cancellation itself. When can you cancel a sale? Something about "Breach of sale" or something, that's what will govern how the cancellation can occur.

    There also maybe a "Subject too" clause somewhere which may have merit.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  6. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    If the purchaser has been formally put on notice and failed to remedy their breach, at worst you (your attorney) might have to obtain a court order for the funds held in trust be released to you. It would be up to the purchaser to mount a reasonable defence.

    Just a word of caution as you head down this road - the debts incurred in getting to this sort of point are typically not subject to successful transfer. The decision to cancel isn't one to take lightly, especially if there are only small deposits at stake.

  7. Thanks given for this post:

    lungz (01-Sep-11)

  8. #6
    New Member
    Join Date
    Aug 2011
    Location
    PMB
    Posts
    8
    Thanks
    15
    Thanked 0 Times in 0 Posts
    I can cancel the sale anytime that the breach occurs, there is no "Subject too" clause but I assume it is under the "Breach" clause in which case I also assume "subject" is refered by "defaulting party" but I think it'll be better to consult my lawyer

Similar Threads

  1. [Question] How far can I stretch "breach of contract" in a property sale?
    By Stephen in forum General Business Forum
    Replies: 30
    Last Post: 26-May-10, 11:09 AM
  2. [Question] breach of contract
    By devesh in forum General Business Forum
    Replies: 1
    Last Post: 05-Nov-09, 07:36 AM
  3. Breach of Purchase and Sale
    By Sherwyn in forum General Business Forum
    Replies: 4
    Last Post: 17-Nov-08, 02:43 PM
  4. Changes to VAT registration process
    By CharlesM in forum Tax Forum
    Replies: 8
    Last Post: 08-Nov-08, 09:42 PM
  5. Tendering Process
    By MissThang in forum General Business Forum
    Replies: 7
    Last Post: 27-Aug-08, 10:32 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •