Final answer:
The question pertains to a legal clause in a housing contract which allows a 14-day period before the agreement can be terminated if possession is not delivered on the agreed date, with options for either party to cancel or prorate the agreement.
Step-by-step explanation:
The question refers to the clause in a housing contract which allows for a 14-day delay in settlement before the contract can be terminated. This clause is typically included to provide both parties, the owner and the resident, with a grace period should the residence not be available on the agreed move-in date. Such a situation could occur due to unforeseen events such as the current residents not vacating on time, destruction or damage to the property, or other factors that prevent the new resident from taking possession of the property.
If the residence is not available, either party may choose to cancel the contract with written notice. If the contract is not cancelled by either party, the terms stipulate that the agreement shall be prorated based on the actual possession date. It is important for both parties to understand the implications of this clause, which is designed to provide protection and a fair resolution for both the owner and the resident in the event of a delay.