Originally Posted by
DW
Since we are on this topic, I would like to think about this issue from the Buyers' perspective and seek your views on the same as well.
If a buyer makes an offer of 1% and issue the Offer to request for an OTP.
1. Within hours (and the buyer has not yet received the OTP yet), if the buyer decides to change his mind and cancels the offer, stops the cheque, what happens ? Is he still liable to make good on the 1% legally??
2. Let's say, now the buyer receives the OTP, and the buyer decides not to exercise the OTP. The 1% cheque is still not cleared yet and he cancels the cheque successfully. The OTP has a language that says, if the Buyer does not exercise the Option in the prescribed manner, the Option money will be forfeited by the Seller. Note in this case, while there is such a clause in the OTP but the Buyer has not yet signed against the OTP and thus technically, there is no agreement on such provision and thus how can the Buyer be bounded on the same? Is the Buyer liable to make good on the 1% legally?
Any views on the above 2 cases?