Agreement to sell- cheque first bounced, then cleared
akash
(Querist) 19 May 2012
This query is : Resolved
Hello Experts,
I entered into an agreement to sell (on a plain paper) as the seller. The buyer gave me 4 cheques, which I acknowledged on the agreement. Out of these 4, one cheque bounced due to insufficient funds. The buyer then deposited money into his account and then I had to put the cheque into clearing again, and then it cleared properly.
Now I don't want to go sell my property due to some personal reason and want to return the money back to the buyer. In the eyes of law, can the fact that the cheque bounced in the first instance (even though it cleared later on) which meant that the buyer did not have sufficient money in his account while entering into the agreement, be used as a reason to get out of the agreement? I'm willing to pay the entire advance back.
Thanks
Adv.R.P.Chugh
(Expert) 19 May 2012
Dear Akash,
The Terms of Agreement to Sell are of profound importance, you've not mentioned what was agreed to be the date of execution of sale deed etc.
If you default on your part - the other party/buyer can seek specific performance.
It is a principle well established that the party seeking specific performance should aver and prove his readiness and willingness to perform the contract. Readiness means financial capacity/etc and Willingness means desire. When the cheque bounced he clearly was not ready for the transaction to materialise which could have been construed as a default by you, and you could have called off the agreement, appropriated a reasonable part of earnest money as liquidated damages.
But when you represented the cheque and same got cleared, you condoned and waived of your right to rescind for default.
Has the property grown in terms of value a lot and that is the reason for you not to go ahead with the transaction ???
Anything concrete can't be said unless an in depth perusal of Agreement is done.
Feel free to talk !
Bharat
Shonee Kapoor
(Expert) 20 May 2012
Unless one sees the terms of the agreement, nothing can be advised.
Cheque bouncing is not sufficient reason for cancellation of the agreement,.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
