How to conclude a preliminary contract
How to conclude a preliminary contract
Order work on the construction of a house ona land plot that is only planned to be acquired into ownership, or to lease a building that is being built, it is possible, if to conclude a preliminary contract. The necessity to conclude a preliminary contract arises when there are currently insufficient legal grounds for concluding a basic contract.
The preliminary contract should specifyterms of the main contract, which the parties would like to conclude in the future. Under the basic contract, property must be transferred or work performed (services rendered).
The preliminary contract must be concluded inthe same form as the main one. For example, an agreement on the transfer of money to a loan between companies must necessarily be concluded in writing. Accordingly, a preliminary loan agreement is also concluded in writing. When the law does not establish the form of the conclusion for the main contract, the preliminary contract should be made in writing. If you do not comply with this requirement of the law, the preliminary contract is recognized as null and void.
In the preliminary contract, the subject and other essential conditions of the main contract should be indicated. For example, if it is a question of buying and selling an apartment, then the apartment data and its cost are indicated.
Do not forget to specify the period during whichmust be signed the main contract. If this is not done, then its signing should occur within a year from the moment when the preliminary contract is concluded. In the specified terms it is necessary to conclude the main contract or one of the parties should offer to conclude it to the other party. In the opposite case, the contract ceases to be valid.
If your partner does not want to sign the main contract, you will have to sue for compulsion to conclude a contract. In addition, you can demand in court recovery of losses from a rejected partner.
