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I bought a house and lot on installment basis and CONTRACT TO SELL(DEED OF CONDITIONAL SALE)is our agreement.
As per our agreement "IN CASE OF DEFAULT OR IF THE MONTHLY INSTALLMENT IS NOT SETTLED ON DUE DATE, AN ADDITIONAL 3% MONTHLY PENALTY CHARGES WILL BE ADDED TO THE UNPAID MONTHLY AMORTIZATION." THE AMOUNT OF MONTHLY AMORTIZATION IS 40,000.00.
I have not paid the monthly amortization for 3 consecutive months. For the 1st month, I paid 1,200.00, 2nd month 2,400.00 and 3rd month 3,600.00 representing penalties. The seller demanded that I should pay 7,200.00 for the third month. I told him that I am updated on penalty charges even though it is not stated in the agreement. That in fact I may pay the penalty as soon and together with the delayed monthly amortization.
Please give your legal opinion as the seller as I understand misunderstood the agreement.
As per our agreement "IN CASE OF DEFAULT OR IF THE MONTHLY INSTALLMENT IS NOT SETTLED ON DUE DATE, AN ADDITIONAL 3% MONTHLY PENALTY CHARGES WILL BE ADDED TO THE UNPAID MONTHLY AMORTIZATION." THE AMOUNT OF MONTHLY AMORTIZATION IS 40,000.00.
I have not paid the monthly amortization for 3 consecutive months. For the 1st month, I paid 1,200.00, 2nd month 2,400.00 and 3rd month 3,600.00 representing penalties. The seller demanded that I should pay 7,200.00 for the third month. I told him that I am updated on penalty charges even though it is not stated in the agreement. That in fact I may pay the penalty as soon and together with the delayed monthly amortization.
Please give your legal opinion as the seller as I understand misunderstood the agreement.
