In part one of this article, we looked at four of the reasons that could warrant terminating a contract with your new home builder. They range from mistakes in the contract and the inability to perform to misrepresentation and coercion. In this second installment, we look at the final four reasons that you could legally break your contract and how you should go about doing it.
- Mental Incapacity – If either party to the contract is determined to have signed the document whilst experiencing an altered state of mind (such as drugs or alcohol), it can be considered void.
- Ineligible Party – If one of the parties is not considered eligible to sign a contract, the document can be broken (such as a person being under the age of 18); either party can break the contract.
- Failure to Meet Deadlines – If either party fails to meet deadlines, the contract can be terminated. The builder may fail to follow the agreed upon timeline, or the buyer may fail to make payments.
- Breach of Contract – If the builder fails to meet the terms of the contract, it can be considered null and void. The builder may file for bankruptcy before the home is completed, for example.
The contract that you and your new home builder have signed is a document that is designed to outline the various responsibilities of the signing parties. As shown in the four reasons outlined above and in the previous article, there are a number of situations that could actually allow either the buyer or the builder to terminate the contract. Do you have reason to?
