Module 3 · Chapter 7

The Sale Contract

The sale contract holds every term of the purchase. This chapter shows how to read it, and explains the four clauses that matter most: the deposit, VAT, risk and late completion.

≈ 11 min read 8-question test

In this chapter

  • How the sale contract is laid out, and the order to read it in
  • Why the deposit is held for neither side, and why no VAT is added
  • Who bears the risk before completion, and what late completion costs

7.1The sale contract in one paragraph

The sale contract holds every term of the sale of Beckside Works. Once contracts are exchanged, nothing else binds the two sides (Chapter 2). Holmfield's solicitors, Denby Holt, drafted it. Your firm marked up Fellgate's changes until both sides could sign the same words.

Most sale contracts adopt a published set of standard conditions and then vary them. This one writes every term out instead (clause 1.3).

Key point

Every clause is the end of an argument. Your note on the contract says who asked for each clause, and what the other side gave for it.

Also in this chapter

  1. How the contract is laid out
  2. Why the deposit is held for neither side
  3. Why no VAT is added to the price
  4. Who bears the risk before completion
  5. Late on the completion date: interest
  6. When a notice to complete puts the deposit at stake
  7. The contract clause by clause
  8. Your job

Preview

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