Sale agreement
Deep Banarjee
(Querist) 23 March 2012
This query is : Resolved
Sir,
I am a purchaser, made a sale agreement with an owner of a plot of land for purchase that plot and I have given him 30% advance of total amount.
The said agreement is valid till 30th April. Unfortunately I failed to arrange rest of the amount. I have informed it to the seller and he is ready to extend this agreement to next 06 months. But I don’t think I will be able to arrange the rest of the amount during this 06 months period.
The clauses included in said agreement given bellow:
1. The agreement made on Rs 10 court paper.
2. It is not registered only made in front of advocate, signed by both parties.
3. This agreement is valid till 30th April and if I failed to do the property registration during this period the seller will charge Rs 10000.00 penalty and will return the rest of the amount (How and when he will return is not mentioned).
Now my queries are:
1. After 30th April can he sell that property without inform me & returned my money to any one?
2. If yes then what action should I take to prevent that?
3. If he does that and not returned my money as per the agreement clause then can I take any action him?
4. Over all how can I recover the agreement money?
Please advice
Thanks,
Adv.R.P.Chugh
(Expert) 23 March 2012
Dear Querist,
Time is clearly of the essence of the contract here meaning thereby if you don't perform your obligation under the contract, you are in breach of contract and would have to pay him damages. The damages would be 'a reasonable amount out of the amount already advanced'. What is reasonable is for the court to decide. The best bet would be to inform him by serving a notice that you are not in a position financially to honour the agreement and he may sell it to somebody else and return your money. This would greatly reduce the amount that you would have to pay as damages (shows good faith and duty to mitigate his loss as far as possible). However in no case can he appropriate the entire amount - you can file a suit for recovery of amount
dev kapoor
(Expert) 28 March 2012
1.Yes;
2.After 3oth April,if the agreement is not bilaterally extended,you cannot stop him from sellingb the land to someone else,as you failed to abide by the terms of contract;
3.If he returns money after deductions, without any hassels,you are lucky.But if he does not you will hv to file a suit for recovery of the same;&
4.In case you are interested in RETURN of your money,act on what Mr.Chug has suggested.
