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RADHAKRISHNAN (SUPERINTENDENT OF CENTRAL EXCISE)     14 February 2012

Sale of land

My father had an agreement to sell his land to to a private ltd company and received an advance amount .The agreement was for a period of 7 months.but 2 years have passed and the buyer has not brougt the lang.moreover,it is understood thet thte M.D  who signed the agreement is no lOnger the M.D and he is practising as a CA.

wHETHER MY FATHER CAN RESCIND THE AGREEMENT TO SELL? wHETHER  THE FACT THAT THE M.D IS NO LONGER WITH THE COMPANY CAN ACT AS A CONSTRUCTIVE NOTICE AGAINST US?WHAT ARE THE CONSEQUENCES?



Learning

 3 Replies

adv. rajeev ( rajoo ) (practicing advocate)     14 February 2012

Still co., has got another one year to purchase the property.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     14 February 2012

Originally posted by :RADHAKRISHNAN
"


My father had an agreement to sell his land to to a private ltd company and received an advance amount .The agreement was for a period of 7 months.but 2 years have passed and the buyer has not brougt the lang.

"

 

IF the agreement has restriction clauses of  "Seven months",  THEN the said agreement by default, becomes  "null & void" at the end of the 7th month.


IF the agreement has "advance forfeiture" clause, then at the end of the 7th month all the advance money may be forfeited.


THOUGH NOT NECESSARY,  but to be reasonable, send a legal notice to the buyer, giving him seven days, to honour the agreement or the agreement stand rescinded on the 8th day.


Keep Smiling .... Hemant Agarwal

Dr J C Vashista (Advocate)     15 February 2012

If company may request for extension of time and you desire/agree then it can be granted. However, you need not send any notice as suggested by Sh. Hemant Aggarwal.

otherwise, after expiry of 7th month, you are not bound by the agreement and earnest money stands forfieted, if the condition/covent existed in the agreement as explained by you. 


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