Cancellation of Contract
A form used to cancel the purchase agreement when a party has the right to do so, typically during a contingency period or after a breach.
When Its Used
Used when a buyer or seller cancels the transaction, either by exercising a contingency right, mutual agreement, or due to the other party's breach.
Key Sections
Reason for cancellation; Release of deposit instructions; Date of cancellation; Signatures required; Instructions for escrow
Common Mistakes
Canceling without having the contractual right; Not addressing deposit release; Unilateral cancellation without proper grounds; Not providing to all parties
Pro Tip
Verify the canceling party has the contractual right to cancel. Address the deposit release upfront to avoid disputes. Document the reason for cancellation clearly.
