Promise of sale problems (part 2) - Daniel Buttigieg

A promise of sale agreement is not valid for eternity. In each promise of sale, the parties agree to a specific time-frame within which the parties are obliged to appear on the final deed of sale. This time-frame can start from the date of signing or else from the date that an agreed event occurs. This agreed time-frame is what keeps the pro­mise and consequently the obligation or right to buy or sell in existence.

It is therefore imperative to keep the pro­mise of sale alive and enforceable before the lapse of the time-frame agreed in a promise of sale agreement. This is done either by agreeing to an extension between the parties, or alternatively, in case of disagreement, by adopting the procedures stipulated at law.

Before the validity of the promise of sale expires, the party wanting to go ahead with the sale or acquisition is bound to follow rigorously the procedure stipulated under Article 1357 of the Civil Code. Irrespective of whose fault it is, or the reason why any one party might not want to appear, or how morally right one feels he is, once a pro­mise of sale expires, any obligation therein agreed is extinguished, and the parties have to revert to the status quo...