Cancellation of Registered Agreement of Sale

Cancellation of Registered Agreement of Sale: What You Need to Know

When two parties, the seller and the buyer, enter into an agreement of sale, it is assumed that both parties will fulfill their obligations stated in the agreement. However, there are times when either the seller or the buyer may wish to cancel the agreement.

In this article, we’ll look at the process of cancelling a registered agreement of sale and what you need to know about it.

What is a registered agreement of sale?

A registered agreement of sale is a legal document that outlines the terms and conditions of a sale. It is a legally binding agreement that ensures the parties involved abide by the terms and conditions agreed upon. The agreement must be registered with the Registrar of Deeds to make it legally enforceable.

Reasons for cancellation of registered agreement of sale

There are a few reasons why either the seller or the buyer may wish to cancel the registered agreement of sale. These include:

1. Breach of contract – If either the seller or the buyer fails to meet their obligations, it can lead to the cancellation of the agreement of sale.

2. Mutual agreement – Both parties can agree to cancel the agreement of sale, provided they do so in writing and it is signed by both parties.

3. Rescission – One party can apply for the cancellation of the agreement of sale due to a mistake, fraud, or undue influence.

4. Failure to meet suspensive conditions – The agreement of sale may be subject to suspensive conditions, such as the approval of a bond. If the suspensive conditions are not met within the agreed-upon time frame, the agreement of sale can be cancelled.

Process of cancellation of registered agreement of sale

The process of cancelling a registered agreement of sale varies depending on the reasons for cancellation.

If the cancellation is due to a mutual agreement, both parties need to agree in writing and sign the cancellation agreement. The cancellation agreement should also state the reasons for the cancellation and any terms and conditions agreed upon.

If the cancellation is due to a breach of contract, one party can apply to the courts for the agreement to be cancelled. The party applying for the cancellation will need to provide evidence of the other party’s breach of contract.

If the cancellation is due to rescission, the party applying for the cancellation will need to apply to the courts for rescission. Evidence will need to be provided to show that there was a mistake, fraud, or undue influence in the agreement of sale.

If the cancellation is due to a failure to meet suspensive conditions, the party applying for the cancellation will need to provide evidence that the suspensive conditions were not met within the agreed-upon time frame.

Conclusion

Cancelling a registered agreement of sale is a serious matter and should only be done in the appropriate circumstances. It is important that the process is followed correctly, and all parties involved understand their rights and obligations. As a professional, I hope this article has provided you with a better understanding of the process of cancelling a registered agreement of sale.