Q: I would like to know if I am legally bound to continue a seller financing sale. I am the seller and I’ve changed my mind
I realize that I am bound by the sales contract to sell the property however I would like to back out of the financing segment. The buyer is telling me I am required to fulfill the financing obligation because I signed a document stating that I had seven days to review his credit which has elapsed. Mortgage lenders often fall through right before closing so my thinking is I don’t have to loan him money even if I said I would. This is where I need help
A:
It will depend on what the document says. However, if you agreed to something in writing, you are bound by the terms of the document that you signed under contract law unless there is a legal justification for you to not perform. Some examples of legal justifications to not perform under the terms of a contract are Impossibility, Statute of Frauds, Statute of limitations, Duress, Mutual mistake, Waiver, Estoppel, Illegality, Indefinite terms, Inducement, Mistake, Novation, Failure of performance, Frustration of purpose, Lack of consideration, Misrepresentation, and Unconscionability.
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