The formal sale and purchase agreement is usually prepared by the seller`s lawyers for the agreement of the buyer`s lawyers and comes after an interim agreement for sale and purchase in a transportation transaction. As with a provisional agreement, there are no standard forms for a formal agreement. The terms of a formal agreement are more detailed and cover a wider range of issues than an interim agreement, although it also contains the basic terms agreed between the parties in the interim agreement. A formal agreement generally contains or deals with the following provisions or issues: Such an interim agreement generally contains the following conditions: As stated in a Court of Appeal case (see Keung – Another v Sunny Way Limited), most interim purchase and sale contracts would be subject to an “escape clause”. An “escape clause” is a clause that allows a party wishing to terminate the transaction (i.e. terminate the agreement) to “buy its exit door” within a short period of time after the provisional agreement has been signed. In the case of a seller who wishes to resign, he agrees to return the first down payment to the buyer, double an equivalent amount to be paid to the buyer (to pay the “double down payment”). In the case of a buyer who wishes to resign, he renounces the first deposit. If one of the parties invokes the escape clause, that party must do so in strict compliance within the time limit set out in the provisional agreement.
The seller accepts the sale and the buyer agrees to acquire the property in paragraph 3. If the buyer insists on a requirement that the seller cannot resolve, the seller is free to have the sale cancelled by a declaration to the buyer. B, for example, a delay of at least seven days after the written termination. Unless this requirement has been revoked in the meantime, the formal agreement will be cancelled at the expiry of the notice and the purchaser will be entitled to restitution of all unpaid payments that have been paid without compensation, while all title deeds will be returned to the Seller. If one of the parties does not conclude the sale or purchase, the defaulting party must pay stamp duty or refund the innocent party who paid the same thing. The seller allows the buyer`s custodian to consult the property for valuation if appropriate notice is given to the seller before its completion. The seller undertakes to prove and title and to lend the property at his own expense and makes copies of documents on invoice that must be provided in accordance with page 13 of the Transportation and Property Regulations.