Balaprasanna (NA) 29 January 2012

Validity of stamp paper agreement

I entered into an agreement to sell my land to a person & I received half of the amount as advance. In agreement its mentioned that registration should be completed within 3(THREE) months after paying the balance. Its been more than 1 year now and he has not yet paid the balance amount. I recently came to know that an agreement is valid for 3 years irrespective of the lapse period mentioned in agreement (3 months in my case).

There is a clause in the agreement that if the registration is not completed within 3 months, his advance amount will be forfeited & I am not bound to sell the land to him.

What am I supposed to do now? Am I liable to sell the land to him or for the advance amount he had paid?

Please Advise.

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1 Replies

sridhar pasumarthy (ADVOCATE) 29 January 2012

Dear Balaprasanna,

According to law, a suit for specific performance of contract should be filed within 3 years from the date stipulated in the agreement for its performance. If there is no stipulation, within 3 years from the date of notice of refusal to perform the contract by the adversary party.

As the purchaser has not come forward to perform his part of contract within the time stipulated, now after one year, he is not entitled for the relief of specific performance of the agreement.

Anyhow, better to issue a notice to the purchser stating about the cancellation of contract for his default and about forfieture of the advance amount and then to sell away to third party to avoid future complications.