Unregistered agreement
Sashi Kumar
(Querist) 08 March 2015
This query is : Resolved
My Uncle had a unregistered sale agreement with a buyer. The buyer did not perform according to the contract so my uncle cancelled the contract and forfeited the 10% deposit.
Two years after the contract date my uncle transferred the property to his children name.
Now after 2 years from the contract date the buyer is filing law suit for money recovery for double deposit, with interest & cost.
We know my uncle's case is very strong but lets assume 1% if my uncle loses, can the buyer recover the money from the property with the money judgment. Because now the property title is not under his name and he has no other assets.
What is the worst can happen if he lose.
ajay sethi
(Expert) 08 March 2015
did your uncle issue notice to buyer of cancellation of agreement on account of failure to make balance payment ? was there any clause regarding forfeiture of advance money ? please clarify
alexander
(Expert) 08 March 2015
It would be desirable to know the terms and conditions of the sale agreement.
Was it an open ended agreement or some specific time frame was agreed upon for the performance of the agreement.
In what conditions the 10% advance deposit was to be forefeited.
Was any legal recourse clause mentioned in the Sale agreement in case of any dispute about the terms e.g by arbitration etc
You need to show the sale agreement to your local lawyer.
Alexander
nom de plume
Sashi Kumar
(Querist) 08 March 2015
Yes there was a multiple notice given to buyer to make balance payment.
There was a specific time for part payment and final payment. Buyer did not make any either payment.
The buyer did not make the payment so cancellation notice was issued to buyer.
There is a clause regarding forfeiture of advance money if buyer default.
Devajyoti Barman
(Expert) 08 March 2015
Yes, terms of the sale agreement is key to answer your query properly.
Unless time is essence of contract you can not unilaterally cancel the agreement even after expiry of time.
Sashi Kumar
(Querist) 08 March 2015
Yes there was specific time for part payment & final payment. The buyer did not make payment on time even after giving notice for payment.
Rajendra K Goyal
(Expert) 08 March 2015
As you have mentioned, your uncle has a strong case in his favor. If decided against, go for appeal.
Dr J C Vashista
(Expert) 09 March 2015
I agree with experts advise, if the court decides in favour of the buyer your uncle must file appeal.
T. Kalaiselvan, Advocate
(Expert) 10 March 2015
since your uncle is confident of winning the case, let him concentrate on it fully, in the event of the case going against him, let him prefer an appeal against the judgement.
Sashi Kumar
(Querist) 10 March 2015
The property is not under his name anymore. Can the money Judgment be attached to the property.
