What happens if vendor makes a mistake on the amount to be paid on day of settlement?

Just wondering.......

On the day of settlement, the buyer pays the vendor the balance of the amount to settle the contract.

For example, if the property was worth $500k, and the buyer has paid $50k as a deposit, the buyer has to pay 450k on the day of settlement (more or less, given strata, water and council levies etc).

What happens if the vendor (or their solicitor or conveyancer) stuffs up the calcs spectacularly and instruct the buyer that they only have to pay, say, 300k, when the amount really should hve been roundabout 450k.

So the property settles, and legal title passes from vendor to buyer.

If the vendor realise their mistake the next day, can they sue the buyer for the difference?

On the one hand, I think, yes, as the purchase price was expressly stated in the contract at 500k.

On the other hand, the vendor has agreed to settle for the 'reduced balance' - buyer pays the vendor as per the vendor's instructions, isn't it...?

I'd be interested to hear from any lawyers on this forum, or if anyone has been through this scenario before.

Will it make a difference if the mistake was $1 or $1 million?
I suppose the vendor could sue, even for $1...?
 
Scott - the question is, if the vendor realises after the property has settled and legal title passes, does the vendor have recourse?
Depends if the law favours the contracted price, or what the vendor erroneously requested as final settlement.
 
On the other hand, the vendor has agreed to settle for the 'reduced balance' - buyer pays the vendor as per the vendor's instructions, isn't it...?

I'd be interested to hear from any lawyers on this forum, or if anyone has been through this scenario before.
Depends if the law favours the contracted price, or what the vendor erroneously requested as final settlement.
thatbum is a lawyer. I'm a law student. It's the contract price. Part payment of a lesser sum cannot be satisfaction for the whole, per Foakes v Beer (unless one of the exceptions is invoked - there are always bloody exceptions, but none seem to apply here). http://www.australiancontractlaw.com/law/formation-consideration.html#partpayment
 
Yes, buyer's solicitors realised it. Vendor 's conveyancer would not accept the buyer's solicitors advice their calcs were wrong and insisted on settlement at the incorrect (greatly reduced) balance.
 
Vendor realised mistake couple days after settlement.
Buyer paid the difference, but there was a legal process involved - documents had to be drawn up etc, not just a matter of paying it.
 
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