Conditions of Creation and Cancellation of “Meeting Place Option”

Abstract

Although sale contract is a binding and uncancellable contract, if the seller and buyer sign the sale contract in a meeting place, as long as they are in the meeting place they can cancel the contract without explanation of their reason. In fact, it is the application of the meeting place contract that creates such a right for the parties. Nevertheless, the buyer and seller can exclude the “meeting place option” through including a condition in the contract or by leaving the meeting place or separation of the parties or the seizure of the sold item/price. As there is a difference of opinions among the jurists as regards the mode of dissolution that is the goal of “meeting place option”, the jurists are also divided on the the seizure of the sold item/price of the option because the separation of parties and the seizure of the sold item/price are two sides of the same coin. Some jurists believe that the seizure of the sold item/price may result in the cancellation of option but some others would even imply the implementation of the option of meeting place and the bindingness of the contract. In the present essay, after the analysis of the concept of “metting place option”, we discuss the conditions of the realization of metting place option as well as those occasions that lead to the cancellation of the meeting place option and the finalization of the sale contract. Moreover, our study of the public notion of the seizure of the sold item/price renders it clear that option belongs to the contract not to the exchanged items. Also the material seizures that takes place being informed of the existence of the option leads to the cancellation of the meeting place option but such modes of seizure like selling or leasing the sold item by the seller might be understood as an act of actual cancellation.

KeyWords: Meeting Place Option, Separation of Parties, Seizure of the Sold Item, Seizure of the Price.

DOI: 10.7176/JLPG/111-10

Publication date:July 31st 2021