We have a transfer, wherein the Offer to Purchase stated that the purchaser will pay in cash for the property, by a certain date. That never happened. The Purchaser only paid a very small amount into the trust account of the Conveyancer initially, and never made another payment again.
The seller instructed us to cancel the transaction, and the purchaser was placed on terms and given 10 days to comply as stated in the Offer to Purchase, failing which the transaction will be cancelled and the deposit paid to the Estate Agents as are also stated in various clauses of the Offer to Purchase.
Our problem is the following
The seller is a CC, and the Offer to Purchase was only signed by one of the ten members of the CC. No resolution existed at the time of the signing of the Offer to Purchase wherein it was confirmed that the CC may sell the property, and that this specific member may sign the Offer to Purchase on behalf of the CC.
Obviously such a resolution would have been drafted by the Conveyancer and signed by all members before the transfer was registered, but the transaction never came to that as the purchase price was never secured.
Can the estate agents act on this contract and retain the deposit of the purchaser if there were no such resolution? Is the contract in other words legally binding?