Forfeiture of Security Deposit if work not completed by contractor

Question

Forfeiture of Security Deposit if work not completed by contractor

24-Aug-2023 (In Civil Law)

Hi As per contract condition contractor has not completed work. hence security deposit of that work is forfeited. is it necessary to forfeit interst on it too??? if yes then which rule and if no then which rule?

Answers (3)

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Advocate Menaz Maqbul Shaikh LawRato · Accepted Answer · 2017-08-26T15:49:37+05:30

Answer #1

It all depends on the terms and conditions agreed between the parties. If no such clause was mentioned, then it is arbitrary. You can/cannot is a point of issue. In such a case, you should first calculate the losses if any that need to be compensated and then think interest.

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LawRato LawRato · Accepted Answer · 2017-08-26T17:26:11+05:30

Answer #2

Dear Sir, Forefeiture of this type of guarantee is generally called as performance guarantee and as power the agreed terms and conditions of the contract between the parties in case of nonperformance of the contract aggrieved party can forfeit the deposit amount under the contract itself not any specific rules need to see the contact terms.

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Advocate Sagar Kothari LawRato · Accepted Answer · 2017-08-30T18:23:13+05:30

Answer #3

Hello, as you have not given the details of said contract so unless and until we go through the said contract it is really difficult to advice you still as per the said facts if it is mentioned in your contract to forfeit the same then you may do so but before any act do issue a legal notice stating all ur facts to the said person.

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