There are a variety of different legal solutions available to handle a contract dispute. A Louisiana real estate sale recently hit a snag when the seller of several pieces of property filed a lawsuit against a company it had a contract with for the purchase of the properties for $2 million. The owner of the properties asserts that the company that contracted to purchase the properties breached the contract and requested its deposit be returned to it.
According to the agreement between the parties, the purchaser of the properties was required to provide a $25,000 deposit that bound it to the terms and conditions of the agreement. Also according to the real estate contract, if the purchaser did not terminate the agreement within a 30-day time period, the deposit would not be returned. The seller asserts that it provided a 90-day extension to complete the purchase of the properties but the purchaser did not sign the contract extension agreement. According to the seller, after 30 days had passed, the purchaser requested that the contract be cancelled and the deposit be refunded to it.
The seller has accused the purchaser of breach of contract and the seller is seeking a determination that the $25,000 rightfully belongs to it and is seeking additional damages to be determined by the court. The goal of every real estate transaction is that it is a successful real estate transaction. When a party to the transaction fails to honor its contractual obligations, the party on the other side of the transaction may have a number of questions, including how to enforce the contract.
Because contracts are important to many daily and commonplace business transactions, the legal system provides different options and remedies for dealing with contract disputes. Because of the prevalence of contracts in today’s business and society, it can be helpful businesses and individuals alike to understand how to approach contract to disputes and what to do if one arises which can vary based on the needs and goals of the parties.
Source: The Louisiana Record, “Dispute between companies over busted $2 million real estate contract in court,” Gloria Parker, June 10, 2015