1st payment made but not the 2nd. What is the effect of cancellation on instalments which had become due but which were not paid. The general rule is that the purchaser can recover money paid before cancellation, unless the seller can point to language of the contract which shows the parties intended the result to be different. This was not a simple contract for sale, but included designing and equipping the ship. The claim to damages resulting from the breach cannot release the guarantor from existing liabilities in respect of accrued rights.
Guarantor agrees to guarantee payment of instalments on the due date.
Even if the builder lost his right against the buyer, it would not affect the builder's accrued right against the guarantors. This site is maintained by the Electronic Publishing Group at UniServe Law . Use our comments form or an address in contact details .