Posted by Jack Mark on July 27, 2005 at 01:21:24:
Big Danger - How to avoid it
Well, that 's what I would like to know.
I remember one time when I obtained an option to purchase a property and shortly thereafter there was a price explosion and the vendor then refused to proceed with the sale and we finished up in court.
The vendor told a lie in court i.e. 'Me no understanding english. I thought I sign to allow a surveyor to come and measure the property rather than agreeing to a sale".
This man who had run a business for 20 years duly had an interpreter in court to translate for him to assist him in his hoax. His solicitor who knew the real situation also was happy to participate in the hoax.
The end result was that he won and the option was declared invalid by the court.
Now I can see similar kind of problems arising in buying paper.
What for example about the following type of scenario :
1. I approach a mortgagee and make an offer to purchase his mortgage. (now, as may often be the case, he has no idea about what rate of interest my offer means to me).
2. He accepts the offer and, later on, discovers that my return is around 20%. What about if he then turns around and claims in court that he was unfairly taken advantage of ? 'He is a professional paper buyer and I am a poor nebbech'
How can one avoid such a situation arising ?
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