WHAT PROCESS NEEDS TO BE FOLLOWED WHEN THE PURCHASER NEGLECTS TO MAKE TIMEOUS PAYMENT OF A DEPOSIT / TO DELIVER GUARANTEES?
When it comes to the payment / financing of the purchase price, it is very important to take note of the fact that the payment of a deposit / delivery of guarantees do not constitute suspensive conditions.
Should the sale agreement for example state that the purchaser must pay a deposit in the amount of R100 000.00 on / before 1 December 2014, and he neglects to do so, the agreement will not lapse automatically. In such a case, one must fall back on the breach of contract clause in the sale agreement, and the purchase must firstly be placed on terms in terms of such clause, for payment of the deposit.
If the payment has still not been made by the time the notice period lapses, the seller will have the right to exercise his remedies in terms of such clause, which will include the cancellation or enforcement of the sale agreement, as well as a possible claim for damages.
