Sale agreement default
Querist :
Anonymous
(Querist) 24 October 2011
This query is : Resolved
I have made an agreement to purchase one FLAT. But, later on it was found that in chain of titles, one original registry is missing. Agreement was meant for valid for 2 months and whoever ( seller or purchaser) backtracks on it, would have to give 20,000 INR to other party.
After 2 weeks of agreement, Seller filed an FIR ( regarding lost of original registry) and collected duplicate copy of registry from Registrar office. He then gave me this copy.When I got to know that one old original registry is missing, I cancelled the deal since there can always be dispute in duplicate registry.
Two weeks later, Seller again called me saying that he has found his old missing registry but by that time, I had already invested my money in purchasing other property.
Now, Seller is threatning me with a legal notice saying that because of cancellation of this deal, he has suffered financial loss as he had planned to invest this money to purchase some other property which he couldnt.
What are my liabilites? Am I a defaulter.
Should I pay him 20,000 to close the case or Am i liable to pay for his losses also.
His faults
- He didnt told me that he has one registry missing in chain of titles.
- He filed FIR after agreement
- I have intimated that I'm cancelling the deal since I do not want to have dupicate registry in chain of titles.
- He found original registry only after I had cancelled the deal.
My faults
- Since agreement is valid for 2 months, and he finally found the original registry before this duration,agreement is still valid.
- I have cancelled the deal by sending E-mail.
I do not know what is appropriate way to cancell the agreement. Mere sending E-mail has how much legality in Indian Law.
Devajyoti Barman
(Expert) 24 October 2011
Since both of you checked the copy of the agreement and still there was a mistake, the same was mutual.
You need not make any payment.
prabhakar singh
(Expert) 24 October 2011
Damages for breach of any contract are not awarded on basis of remoteness and prospect,claim if any can not go enlarged greater than maximum loss agreed to be 20k out of which only proved can be awarded.
The deal you saY WAS CANCELLED BY EMAIL.TWO PROOFS WOULD BE REQUIRED. FIRST THAT IT IS HIS VALID ADDRESS. SECONDLY HE READ THE CANCELLATION email of yours BEFORE HE GOT THE ORIGINAL.
