Money vs signature TPC =E2=80=93 Law Q12
10/08/201810/08/2018 Thomas = Sim PEA2066
Money or signature, which is mor= e important in a contract?

In a normal sequence of events, a book= ing fee is paid upon an offer to the landlord or vendor. When the agent (wh= o communicate with his principal) accepts this booking fee, it is as if the= booking fee is accepted by his principal. So, the contract has started as = all elements are fulfilled. However, full payment has not completed. Exampl= e, other deposits like security deposit and utility deposits in case of ren= tal. And, if it is a sale, the remaining loan and obligations of the purcha= sers - see below.

Bearing in mind that =E2=80=9Ctime is = an essence=E2=80=9D as in S.56 CA30, these subsequent events have their tim= e frame to complete. If it is a tenancy, the subsequent full payments need = to be paid. Only upon payment of all that contingent events, that the tenan= cy agreement can be formed in completion. Therefore, signature to the tenan= cy agreement part of the whole events, not the initial part or final part. = When a promise is made, all elements of the promises/conditions are conting= ent to the contract. If any such commitment were not fulfilled, the signatu= re holds no water.

For example, you entered into an agree= ment with Leonard to paint his fence, repair his ceiling in living room and= he pays you a sum of money. Before commencement, he also needed to give yo= u entrance key to his bungalow. Both of you signed the agreement before the= commencement date, and he has paid a down payment for your work. However, = he never passed you his bungalow key. Is the signing of the name thus make = you liable to the delay, no matter what?

No, because a condition had been set -= he has to pass you the key! Without that condition being fulfilled, the co= ntract is not formed (becomes unconditional).

In the post SPA or post tenancy period= , the agreement has become a completed contract. Therefore, any breach of t= he performance will be discharged in accordance to the contract. Tomorrow w= e shall see some examples.