Terminating A Contract???
I have a prop.(fixer-upper) under contract. It turns out this is not such a good deal. I was looking to assign it but no one seems interested. So I want to terminate the contract without any legal problems.
First of all, I never gave him an earnest money deposit, second I have a clause in the contract stating that "the contract is subject to the inspection and approval of my partner by 9/11/03".
I have a letter all prepared to send certified mail saying my partner didn't approve, referencing that clause.
Do you think I could just walk away from the deal even though I never made a deposit, without sending the letter? Or, Could I just talk to him man to man and tell him I'm not interested and try to have him terminate the contract?
Tell me what do you think. Thanks! 
livtrade
Honesty and Integrity is the ONLY way to do business successfully. Please contact the owner and tell him honestly that the proposed deal is off.
As it is said many times in this forum and elsewheres - know your exit strategy(ies). Backing out of a contract is one of those options.
The quicker you tell the seller, the less damage done. You never know, if you're fully honest and apologetic with them, and they still cannot sell in 3-6 months, they may call you back with a lower price. Because if they still can't sell it, they'll probably understand why you couldn't work the deal the first time around.
Good luck - and remember, this is a Win-Win-Win business.
Greg Appelt
As a matter of principal, I agree that honesty is always the best policy. As a legal matter, however, it is equally important to CYA (cover your a_ _).
If you have an out clause, use it. If the contract was contingent on your partner approving the inspection and he didnt' approve it, then thats that. This assumes, of course, that you actually DO have a partner. If you don't then u were disingenious from the start.
Send the letter, or some form of "termination of contract" form to the seller. There is no need to tie up his property any longer.
Phone call with letter to follow. In some states by the way, just signing the contract is consideration ( no more need for the " $10 and other consideration" clause to make contracts valid. ) Now they just figure "consideration" Better to be safe and forthright.
[addsig]