A penalty clause in sale agreement specifies the financial consequences if one party fails to fulfill their obligations as per the terms of the agreement. I have shared the key points typically included in a penalty clause.
What are the Key Points of a Penalty Clause in an Agreement to Sell Property?
This clause specifies the events that will trigger the penalty, such as delayed payments, failure to transfer the property, or breaches of specific terms of the agreement.
Penalty Amount: Clearly outlines the amount or percentage to be paid as a penalty in case of a breach. This could be a fixed sum or calculated based on specific criteria.
Payment Terms: Details about the timeline and method for paying the penalty. It may also include interest rates if the penalty is not paid within the specified period.
Mitigation and Waiver: Defines any conditions under which the penalty can be mitigated or waived, such as unforeseen circumstances or mutual agreement between the parties.
Legal Recourse: States the legal rights and remedies available to the non-breaching party in case the penalty is not paid.
Hope this information helps you!
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Authors Of The Question
What is Penalty Clause in Sale Agreement?
Trisha
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2024-12-30T10:08:09+00:00 2024-12-30T10:08:09+00:00Comment
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