Being Out of Contract
What does being out of contract mean? It means a date in the contract has passed and the Buyer or the Seller has not performed a requirement of the contract terms and conditions. While either party may not necessarily want to terminate the sales contract as a result of this, it is never good to be out of contract because one of the parties could use the fact that a deadline date wasn’t met and have a legal means to terminate the contract.
As the seller, if you are unable to perform a provision of the contract, you would need to obtain a signed agreement to Amend/Extend a date that you may need more time. The applies to the Buyer also if they need additional time to meet a deadline date.
Keep in mind, neither Buyer or Seller has to sign and agree to any agreement to Amend/Extend a contract date or any other type of new provision so it is best to always try to meet the deadline dates in the original contract.