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If I said a contract will putting a stop payment on the deposit check terminate the contract under IL state contract law

Asked over 3 years ago - Frankfort, IL

I signed a contract with BuyOwner to sell my home on 10/23; the form states you the customer may cancel this trasnaction any time prior to midnite of the third business day after the date of the transaction. I wish to do this but I gave a $320.00 deposit; should I place a stop payment on my check?? They claim tohave a no refund policy, will I lose my deposit???

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Attorney answers (2)

Jill Gilbert Welytok

Reputation Level 6

Answered over 3 years ago. Patent Application Attorney in Milwaukee, WI.

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Case law and statutory law may vary, and you need to read the contract very carefully.

A stop payment generally will not expose your to liability for breach of contract if you have no contractual obligation, and you otherwise have a right to cancel the contract.

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Mazyar Malek Hedayat

Reputation Level 12

Answered over 3 years ago. Bankruptcy Attorney in Lockport, IL.

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You ask whether you can terminate (or prevent the creation of) a contract by stopping payment on a check? The short answer is 'no.'

To begin with, any contract designed to transfer real estate will only be valid if it is signed and in writing. 3 things must be in place to establish a contract:

Offer
Acceptance
Consideration

Your down payment would be the third element (consideration). Once that is given the contract has been made and cannot be 'unmade.' This also means if you sell your house then you will have to pay the flat fee and small commission to which you agreed.

I hope this information was helpful. Feel free to contact us with any questions or follow up.

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