This clause sets out what happens when a vendor fails to meet the settlement. Once the contract is signed, the vendor is committed and has no cooling off period. If the vendor wishes to impose conditions on the contract which are unreasonable, a purchaser should re-consider whether buying the land is a wise decision.
A purchaser who is in a position to settle may be greatly inconvenienced if the vendor is not able to settle on the agreed date, for example there may be costs associated with storage of furniture and effects, and alternative accomodation. As a general rule, these costs can be claimed from the vendor.