Dear Sir,
We (my wife and myse) were looking to purchase a plot in Mysore. After searching on the internet, we zeroed in on a property a 60x40 ft site) advertised by the owner (not a broker). After several telephone calls, the owner came from coorg to Mysore on 6th March to show the property. We negotiated and agreed to buy the property and paid a post dated cheque (for 21st March 2012) for Rs 1 lakh on the same day. The owner (seller) gave an acknowlegement on a plane paper, that he has recieved the post-dated cheque.
But after visiting the plot later on the same day, we noticed that the the site is surrounded by sites of smaller dimentsions in front and back lanes and the whole area is full of 30x40 or smaller sites. Opposite to the plot was a vacant area measuring 70x500 ft. We were concerned that if that piece of land is for residential site, they would be 25x35 ft sites.
Hence we called on the owner very next day ie., 7th March 2012 and let him know our concerns and we wanted him to get us the details of the masterplan of the layout from Mysore Urban Development Authority (MUDA). We expressed that the vacant area in front of the site is of smaller residential sites, then we may not be interested to go through the deal any further. We also let him know that we need the information before the date of the cheque for token advance.
But several phone calls and an email later, we waited for 10 days and since we did not hear from anything from the owner, I sent him an email on 16th March 2012 that I am calling off the deal and have blocked the cheque from payment.
Now, on 22nd, I recieve a mail from the owner that he has spent his time and money for initiating the process of obtaining the information from MUDA and since we have called off the deal, we need to pay him 25% of the token Amount agreed up on verbally.
What is my legal position in this matter? I think we acted in good faith (and hurry!). But am I bound to make that payment when no agreement was signed and everything was on verbal negotiations?
Regards,
Dr Keshva
