UNDERSTANDING CONTRACT OF SALE OF LAND 1 (PART ONE)

                                     USEFULNESS OF CONTRACT OF SALE OF LAND

•  The vendor is tied down and the purchaser is given time to investigate vendor’s title before completion
•  The death of either the party does not terminate the contract as personal representatives proceed with the contract
•  It prevents last minute withdrawal as parties are bound by the terms and any such withdrawal would amount to breach
•   Protects the equitable interest of the purchaser
•   It crystallizes the position of the parties and ensures the certainty of the terms of the sale as terms have been expressly agreed upon
•   It prevents gazumping and gazundering. That is, the vendor cannot unilaterally and subsequently increase purchase price as the price has already been fixed in the contract (gazumping). And the purchaser cannot compel the vendor to reduce the price because he has an offer of a lower price (gazundering).
•   The Contract for Sale of Land is an available document in the hands of both parties. The vendor can tender it as evidence of expectation of money, while the purchaser can create a mortgage of his equitable interest
•   Matters relating to chattels and fittings are dealt with under the Contract for Sale of Land and need not be reflected in the final Deed of Assignment
•   Both parties can procure collateral advantages as the purchaser can take possession before completion of the sale, if it is expressly provided for and the vendor can receive deposit or part payment.
•   It is easier to enforce the Contract for Sale of Land as the terms are clearly stated
•   It circumvents and restricts the application of implied covenants
•   It determines the position of the parties before the consent of the Governor is obtained.