Advocate Santosh Kumar Mishra

Questions Answered by Advocate Santosh Kumar Mishra

Q: Cancellation of sale agreement as client isn't paying residual amount

I entered into a sale agreement with a person on the following terms and conditions. It is about a vacant land, 3500 sq.ft area, and the buyer on a Rs.20 non judicial stamp paper entered into an agreement after paying RS.50,00,000 by cheque advance and promising to pay the balance RS.2,00,00,000 within 50 days from the date the sale agreement was signed. 100 days have passed since then and the buyer seems to be not in a position to pay me balance and complete the deal The sale agreement was signed by seller and the buyer and two witnesses. The deed in not registered.Am I within my rights to cancel the agreement and return the paid advance. If "yes"how to go about it? Also, please tell me what to do, if he refuses to take back the advance and do not agree to cancel the sale agreement?

Advocate Santosh Kumar Mishra answered
Cancellation of sale agreement as client isn't paying residual amount.1) you can cancel the agreement on grounds of failure to pay balance amount within period as specified in agreement for sale .2) Refund the advance amount received by cheque .3) Take receipt from the purchaser that sum of Rs 50.00.000 has been received.4) In respect agreement for vacant land/plot by you... cancel the agreement and request to take back the advance money .ORThere is no need to panic. The unregistered agreements not enforceable in law even if you file a suit for specific performance of contract in either issue. It is suggested that you write to the buyer intimating that since he has not honored the agreement, the same stands cancelled and thus you're refunding the advance amount by cheque payment and similarly you may write to your vendor stating that due to the circumstances prevailing you are cancelling the agreement and request him to refund the advance paid by you.