How to cancel the offer for sale after receiving the token money ?

I got a customer for my house about 5 months back, he gave me token of 25,000 and made paperwork on stamp paper, the title of which says receipt cum acknowledgement cum declaration. No clause have been put as to what happens if either party wants to cancel the deal or validity. The breakup of installments to be paid have been mentioned according to timeline, like advance in 3 to 4 months and balance in 8 to 9 months. The advance was suppose to come by January, now customer is saying due to demonetization he will have to delay the payment. I would like to know how can I go ahead and cancel this deal and pay his 25,000, since the buyer is adamant on buying more time and not willing to cancel.

Answers (3)

314 votes

Based on the information provided, it appears that in terms of the reciept the prospective buyer was to make payments in a time bound manner, which he has failed to do. Thus one can interpret that there is a breach of the contract by him as time was the essence of this contract. In my opinion therefore you can send him notice of cancellation of the contract alongwith a cheque of amount received. However please note that the above opinion is given without going through the document mentioned by you i. e the receipt cum declaration.

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323 votes

First and foremost I would like to advise you not to cancel the agreement as due to demonization, property prices have been affected and youay not get the same value for your property again. You may extend the same agreement by entering into an addendum to it as regards the extension of time for making payments. Of you don't want to continue then see if there is a clause in the agreement as regards what happens if the purchaser fails to fullfil his promise.

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A sale deed can be cancelled unilaterally through an appropriate petition before the competent court by one of the party to the deed praying it to be cancelled and the reasons thereof. If both the parties are consenting to the cancellation, then it can be done jointly before the competent officer.

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