All agreements of sale contain a clause which regulates the breach of the agreement by either of the parties.
Where a party fails to comply with a contractual obligation, such as the timeous payment of a deposit, the contract does not automatically lapse, but the purchaser is in breach of the contract.
In such situation, the seller has two options, namely:
- Allow the purchaser more time to effect payment of the deposit, (i.e granting of an indulgence) or
- Place the purchaser in breach using the breach clause in the contract.
If placing the purchaser in breach, the seller is obliged to act in accordance with the breach clause and to allow the purchaser a specified period of time within which to remedy (correct) the breach.