Addendums to a sale agreement is an essential tool by which the terms and conditions of an agreement can be changed. The most important amendments that are done by way of addendums are usually changes to the terms of the suspensive conditions i.e.:
– The date by which the suspensive condition must be fulfilled; or
– The bond amount that must be obtained; or
– If a lower bond amount than stipulated in the sale agreement was obtained, the deposit now payable, and acceptance of the lower amount.
It is crucial that any amendments to suspensive conditions must be done before the expiry date included in the sale agreement. Once the expiry date has passed, the agreement lapses and becomes null and void. According to Mia v Verimark Holdings (Pty) Ltd the sale agreement immediately & automatically lapses if a suspensive condition is not met and no claim for damages flows therefrom. Further, the agreement can’t be revived by any addendum after expiry thereof.
