Posted on: 10th Apr, 2004 04:41 am
Backup Contract is a contract of purchase and sale for a particular property which becomes binding when another agreement for the same property terminates.
The contract to which this addendum backup contract is attached, places the legal obligation on the parties to execute it and it is must for them to pay the earnest money and any fee as provided in the back up contract.
The contract to which this addendum backup contract is attached, places the legal obligation on the parties to execute it and it is must for them to pay the earnest money and any fee as provided in the back up contract.
Hi,
As mentioned by Sam a very simple example to illustrate how a backup contract as works would be like,
Mark makes a contract with Henry for the sale of the property based on the condition that Henry obtains finance within a 40 day period. In the meanwhile, Mark also arranges backup contract with Collins, for a situation Baker fails to obtain the finance within the specified period of time.
Thanks
James
As mentioned by Sam a very simple example to illustrate how a backup contract as works would be like,
Mark makes a contract with Henry for the sale of the property based on the condition that Henry obtains finance within a 40 day period. In the meanwhile, Mark also arranges backup contract with Collins, for a situation Baker fails to obtain the finance within the specified period of time.
Thanks
James