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Erastotenes Plato   12 November 2024

Suit specific performance land sale

Dear learnt elders

On June 9 2017 a claimant received an agreement for the sale of land to expire July 8 2017. He said it was not a proper agreement as it was done in the defendants personal capacity.

On June 20 2017 the claimant received a counter offer at a higher price from the executors of the estate to expiire on July 8 2017.

The claimant signed the June 9 2017 on June 20th but refused to sign the new counteroffer dated June 20 2017.  His check deposit dated June 20 2017 was not accepted as he did not sign the new counteroffer.

Claimant files suit for specific performance by registering the June 9 2017 agreement. Is this agreement barred by limitation? Is the June 9 2017 agreement valid? Is the counteroffer valid?



Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     12 November 2024

The suit for specific performance of contract can be filed within three years from the date os sale agreement.

The limitation for filing a suit for specific performance of a contract is three years from the date of performance or the date the plaintiff is notified that performance is refused. This is as per Article 54 of the Schedule to the Limitation Act, 1963.

Specific performance is an equitable remedy that requires one party to fulfill their obligations under a contract. It's typically used when monetary damages aren't considered an adequate remedy.

Sankalp Tiwari   14 November 2024

Dear Reader,

Your situation represents a contract dispute, and there are a couple of important points that can be noted on this basis.

The June 9, 2017 agreement would be valid generally if the claimant had entered into the same voluntarily and the terms put across were clear and capable of being enforced under the Indian Contract Act, of 1872. Since the claimant signed the said agreement on June 20, even though it is claimed to have been signed in the defendant's capacity cannot be an issue, unless there is a want of authority or capacity on the part of the defendant. In the case of contract law, free consent on both sides is a significant issue (Section 10, Indian Contract Act).

Referring to the limitation, the claimant would file a suit for specific performance under Article 54 of the Limitation Act, 1963, within three years from the date of the breach. As the agreement has come to an end on July 8, 2017, and the claimant files the suit for specific performance now, it may even fall within the prescripttion period.

The June 20, 2017 counteroffer is a new offer. Under the law, a withdrawal can take place even before acceptance. In this case, the June 20 signing of the agreement dated June 9, 2017, by the claimant would constitute acceptance and performance of the prior agreement. However, the refusal to sign the counteroffer does not defeat the June 9 agreement. In Balfour v. Balfour (1919), cases courts have always underscored the meaning of intention to create legal relations under agreements. To be able to cite this as an argument showing that the original June 9 agreement stands.


Hope this helps, if you have any questions, reach out to me at sankalpt44@gmail.com


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