During settlement in Western Australia, the purchaser's bank fails to provide settlement funds due to a technical error, causing a two-day delay. What is the most likely consequence under standard contract terms?
Correct Answer
A) The vendor can charge default interest at the contract rate on the unpaid balance
Under standard WA sale conditions, a purchaser who fails to settle on the agreed date is in default even if the delay is caused by its lender. The usual immediate consequence is interest at the contract rate on the unpaid balance until settlement. For a longer default the vendor can serve a default notice and, if it is not complied with, terminate.
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