An option is kind of a contract that is written for trading of shares and stocks in business world and stock exchanges. When a person sells or buys shares and stocks, he signs this option and agrees to keep, sale or resale the stocks according to the consent and authority of the previous owner. If the purchaser violates the option or stock agreement, the seller has the right to inform him about his mistake and to let him know about what will happen next. This all is done with the formal notice to purchaser for breach of option.
Importance of Notice to Purchaser for Breach of Option:
When you write an agreement with the seller or buyer, the key purpose of the agreement is that both parties respect the terms and conditions enlisted in the contract and in case a party violates the agreement, the other party can take legal actions against him. The same thing happens with the trading option as it’s just a different kind of agreement but serves the same purpose. As a seller when you find out that the purchaser has breached the option, you have the right and legal responsibility to inform him before you take any legal action against him. This will allow him to prepare for the problem and discuss the issue with you in order to resolve it. If you have filed a law suit against him in the court, it is more important to inform him if you want him to attend the court dates. This all is done with the formal and legal notice to purchaser for breach of option. As it’s said that this is a legal document, you need to hire an attorney to draft the content of this notice because he is a professional and he knows how to present facts to the purchaser and what elements to add in the notice.
Useful Tips for Writing Notice to Purchaser for Breach of Option:
The content and elements of this notice depends on each particular situation and the seller along with what he wants to do next. It can result in termination of the option, some kind of compensation for the seller, a penalty as punishment or a law suit against the purchaser. As the first tip, you need to mention the reference of the option that you are discussing with the buyer in detail. After that, you should mention the specification of the breach of option or stock agreement that the buyer. Here you need to explain what the buyer did wrong and why he shouldn’t have done that. Once that is clear and explained, you should inform the buyer that what you will do next i.e. termination of the option, a financial compensation for you or you will file a law suit against him and see him in court. You also need to mention the duration or days that you allow him to prepare for this and contact you to discuss the dispute.
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