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Hi, I am the seller of a business in Calgary and my buyer is

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Hi, I am the seller of a business in Calgary and my buyer is out of province. He is not a Canadian citizen. Written agreement dated back in 2010.

Terms of agreements are:

1) possession prior to Oct 01,2013
2) non-refundable deposit of $20,000
3) regular installment payments prior to possession total $130,000
4) balance of $200,000 to be paid in bank draft by possession.

Now the buyer wants to back out due to financing problems. what are my options in terms of money already received & spent ($150,000)? Am I liable to pay him back even though I do not agree to void this contract?

Any advice would be much appreciated as time is of the essence here.

Thank you.

Susan.
Thank you for your question.

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You certainly don't have to give him back any money.

To the contrary, he owes you the rest of the money in accordance with the terms of the contract.

He has no right to back out regardless of his financial situation. So, if it makes sense financially you can sue him to compel him to complete the terms of the contract.

Let me know if you need any further clarification.
Customer: replied 3 years ago.

Thank you Debra, due to the fact that possession is by Oct 01, 2013 and in the event he will not complete the transaction, can I still go after him after this date of Oct 01, 2013?


 


Does it matter that the first $150k was paid by actual cash installments instead of written cheques? I have always provided receipt to him.


 

Yes for sure you can go after him. You have a binding contract that he is about to breach.

It doesn't matter how he paid you.
Customer: replied 3 years ago.

The $130k installment was not indicated as "nonrefundable" on the contract and he is saying that I should pay him back that amount.


 


Is he right in that?

No!

He is not entitled to anything back because he is not entitled to walk away.

He owes you all he owes you pursuant to the contract and HE can be sued to PAY you for all the rest of what he owes you.
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Customer: replied 3 years ago.

One last question Debra,


 


The agreement was signed by both the buyer & seller but without any witnesses.


 


How good is that in the eyes of the court in Alberta?


 


Susan.

There is no doubt there is a binding contract.

He's even paid for part of the costs already.

You don't need witnesses.

And I doubt he is going to deny there is a contract. He simply thinks he can back out but he cannot.

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