Methods Of Exchange Of Contracts

Question 1

Risks of telephone exchange

Answer 1

Neither party is able to check that the others contract has been signed.

Neither party is able to check that the others contract is in the agreed form and incorporates all agreed amendments.

Question 2

Formula A

Answer 2

Buyers solicitor will have sent their clients part of the contract, with the deposit cheque.

Sellers solicitor will then confirm that they hold their clients part of the contact duly signed by the seller in the agreed form.

Sellers solicitor undertakes to send their clients part to the buyers solicitors the same day.

Question 3

Formula B

Answer 3

Each solicitor holds their own clients part of the contract. In the telephone conversation both will confirm that their respective parts of the contract are signed in the agreed form.

Both undertake to hold to order.

undertake to send their respective parts of the contract to the other, the buyer also undertaking to send the deposit.