Landy, the Seller has entered into a Sale and Purchase Agreement (“SPA”) with Quinie, the Buyer. The term of the SPA was 3 months completion period and 1 month extension with 8% pa interest calculated on daily basis. Unfortunately, Quinie’s financier was unable to release the loan sum at the end of the 4th month. Landy was informed by the Quinie that he was not allowed to terminate the SPA at this stage. Without any choice, he granted Quinie another month extension with interest for the bank to release the balance purchase price to him. Is that true?
Upon termination, Landy is also entitled to forfeit the “Liquidated Damages” being the Deposit paid by Quinie, normally equivalent to 10% of the total purchase price.
Kindly note that the liquidated damages could vary depending on the agreement.
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