Deposit not Delivered: REMEDIES

Deposit Classes - ATLANTIC CIRQUE LTD.

Question:

An Offer is accepted, the deposit clause in the agreement states that the Buyer will bring deposit on “Saturday April X, 2020”. The Buyer doesn’t bring deposit… Is the offer dead?

Answer:

However, contracts are neither alive nor “dead”.

This contract was executed, accepted and now requires “performance” of its terms. One provision called for the deposit to be delivered. The Buyer failed to deliver the deposit and consequently is in breach of contact.

The breach by the Buyer gave rise to two options in the Seller’s favour:

  1. ignore the breach, affirm the contract, and proceed as usual, or
  2. accept the breach, terminate the contract and proceed with other remedies.

It’s very important to make sure that the contract is not “dead” as in:

1) cancelled,

2) rendered null and void, or

3) released.

In all such cases, the Seller would have lost their remedies. Wording, phraseology, emails, discussions and texts are extremely important.

There are no remedies for a “dead” contract after the funeral. The correct expression would be a terminated contract.

Is would be very unwise for the Listing Agent to make reference to the status of the contract being, cancelled, null and void or released. This might compromise the Seller’s rights under the Agreement.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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