Withdrawing from convenium

A reader wishes to know under what circumstances may he withdraw from a promise of sale and purchase agreement (convenium) where the deposit has been paid on account of the selling price.

In a promise of sale and purchase agreement it is best to state clearly and precisely whether the parties to the agreement intend to pay a deposit on account of the price or by way of earnest (kapparra). In the latter case, both parties may opt out of the agreement. In fact, in such cases the parties are not actually binding themselves to perform the final deed of sale and purchase.

Where earnest has been given, each of the parties, whether with or without a good and just cause, is at the liberty to recede from the contract. The party giving the earnest would forfeit such earnest and the party receiving it would return double the amount thereof.

When the deposit is paid on account of the price, there is an obligation on both parties to carry out the final deed of sale and purchase. If the sale can no longer be carried out, the party in default is obliged to make good the damages to the other.

Therefore, since the reader paid the deposit on account of the price, he is bound to proceed with the final deed of sale unless there exist other justifiable grounds at law, which warrant the rescission of the contract.

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