 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
|
 Posted: Fri Apr 09, 2004 5:27 pm Post subject: Cancellation Clause - Withdrawal from the contract |
|
|
A Cancellation Clause is a provision in a lease or contract document that states under what conditions the parties involved can withdraw from the contract. The contract can be related to a mortgage deal or any insurance policy.
In the field of insurance, the notice with the cancellation clause is provided to the insured after the termination of one policy and the renewal of another. It may even be issued if the insured has not paid the premiums. A cancellation notice can also be provided for a current policy when both the parties decide upon renegotiating the terms of the policy. Cancellation clause is also valid in case of cancellation of insurance on home or office.
Cancellation clause and its affect on mortgage foreclosure:
- In case a foreclosure is cancelled, the borrower shall continue to pay for the mortgage provided the lender does not demand the payment in full due to such an event.
- Even if a foreclosure is called off, the cancellation clause is such that it will not affect the commencement of another foreclosure in future.
|
|
