CLAIMING OF DAMAGE DUE TO BREACH OF A CONTRACT PERTAINING TO PROPERTY SALE
Querist :
Anonymous
(Querist) 07 December 2010
This query is : Resolved
If the Allotment Letter / Agreement of Sale shows that the Property being sold / bought between the two parties is of commercial nature whereas Seller cannot produce the documents of Formal Approvals to prove it being commercial and when it is proved that Seller can only sell a Residential property and therefore Buyer cannot enforce upon him a suit of Specific Performance, then the only obvious way Court can compensate the Buyer is in the form of awarding Damages.
What would be the basis of calculating damage, since seller cannot deliver the commercial property to the buyer?
Will it be on the basis of the two rents i.e. commercial rent and the residential rent on per month/year basis for the entire expected lifetime of the property, or on any other basis?
Raj Kumar Makkad
(Expert) 07 December 2010
There is no definite formula to calculate the damages, however, the petitioner claiming damages shall have to prove his actual damages and should also have to affix court stamps accordingly with the right to the respondent to rebut the same and ultimately court shall decide the matter on the basis of material on the file.
