Cancellation of sale agreement as client isn't paying residual amount
18-Jan-2023 (In Property Law)
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?
The terms of the agreement of sale have to be studied to render you proper advice. Please see what the cancellation clause say and act accordingly. If a written notice is called for, send the intended purchaser due notice and then proceed with refund of payment upon expiry of such notice period.
Nowadays it is mandatory to register the agreement for sale. Normally there is a provision in the agreement that if the buyer does not fulfill his promise the seller has the right to forfeit the advance amount . You can do as per the terms of the agreement.
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 .
OR
There 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.
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 .
OR
There 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.
Yes. You can very well cancel the agreement and return the earnest money in case your agreement says time is essence of the contract. When time is stipulated in the agreement both parties to it are bound by it. Violation of terms and conditions of contract amounts to breach of contract. Hence, the buyer cannot force you to execute sale deed after expiration of agreed period.
You can send a letter to the purchaser enclosing DD for the Rs.50L by registered post with acknowledgement due. Make sure that you are mentioning that the Purchaser is not ready and willing to execute Sale Deed within the time stipulated in the sale agreement.
You can send a letter to the purchaser enclosing DD for the Rs.50L by registered post with acknowledgement due. Make sure that you are mentioning that the Purchaser is not ready and willing to execute Sale Deed within the time stipulated in the sale agreement.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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