Cancellation of sale agreement
sheela
(Querist) 12 September 2012
This query is : Resolved
I run an HR agency.I entered into agreement to sell my residential property in HP. The buyer has made payment of about half the agreed amount to me. He is not paying the balance amount though the last date as per agreement is over. He is actually a middle man and won't pay me till he is able to get a real buyer. Can i cancel the agreement or I would have to move a court to cancel the agreement. I would return the amount to him.
ajay sethi
(Expert) 12 September 2012
is time the essence of contract ? what are clauses in the event of delayed payment ? is provison made for forfeiture of earnest money ?
contact a local lawyer . need to peruse agreement to advise further
sheela
(Querist) 12 September 2012
yes, sir the time is the essence of agreement but it does not have any clause about delayed payment. Lawyers are pretty expensive:just tell me if the cancellation can be done without the intervention of court or cancellation through court is the only course. THANKS, SIR
ajay sethi
(Expert) 12 September 2012
you are penny wise and pound foolish . necessary to go through provisions of agreement .
you can issue notice to purchaser to pay balance amount within period specified in agreement failing which you shall forfeit the earnest money and agreement shall be cancelled .send notice drafted by a lawyer .
sheela
(Querist) 12 September 2012
I am only trying to be wise with my money.Trust me, earning money is tough. Anyway, Sir: the period specified as I said before is already over. Do I need to issue notice to him even then. Problem is he won't mutually cancel the agreement and new buyers ask for cancellation agreement. I am trapped for no fault of mine and that hurts. The fella is sitting pretty and enjoying the sight of my comeuppance.
Yogesh Anand
(Expert) 13 September 2012
I agree with Mr. Sethi. Spend penny for legal advise and save pound which you may lose otherwise.
sheela
(Querist) 13 September 2012
I'd definitely spend pound when the need arises but at the moment my query remains unanswered. Would you learned gentlemen please oblige me by answering it i.e. do I need to issue him notice even when the period specified in the agreement is over.
M V Gupta
(Expert) 13 September 2012
As the time for completion of the ale is said to have expired and the buyer has failed to comply wit the condions of sale, namely pay the balance consideration money and get the sale deed executed, u may serve notice of termination and forfeiture of the earnest money. you should along with the notice of cancellation return the balance of the advance amount paid by the buyer. Return the balnce amount only by crossed account payee cheque. Send the notice by registered post ack due.
sheela
(Querist) 13 September 2012
Lots of thanks to you Mr. Gupta, Sir
Anish Thakur 7018812737
(Expert) 14 September 2012
i too agreed with Mr. Gupta, if your property is based in HP ,you are free to contact me ON 9459321520 regarding this as myself too based in hp.
V R SHROFF
(Expert) 14 September 2012
"I agree with Mr. Sethi. Spend penny for legal advise and save pound which you may lose otherwise"
You are told to spend money recd by you from him. You are to spend his money, not yours.
You need to issue Legal notice, and a PUBLIC NOTICE in news papers , so that third party cannot create any right in your property.
Then you will be free to sell it to another person.
Deduct your damages and Legal expences ext, when you need to repay him, Till then use and enjoy his money.
So don't be penny wise, but save and share the POUND that u r likely to get/ already got.
sheela
(Querist) 14 September 2012
Thank you all gentlemen. You have been very helpful. There is indeed no dearth of good persons in this world. May your tribe grow.
c n vittal rao
(Expert) 15 September 2012
in contracts for immovable property time is not an essence of the contract nevertheless go ahead and cancel the contact thereafter demand full payment or sue for specific performance
sheela
(Querist) 15 September 2012
This foxes me: one expert seems to imply that time is the essence and you say time is not an essence. What I make from all this is that law is not definite, a la you show me the man and I'd show you the law.
M V Gupta
(Expert) 18 September 2012
Here the question is breach of contract terms, which under law entitles the party to terminate the contract on this ground alone. The querist may pl check from the agreement whether it does not empower him to forfeit the earnest money and terminate the contract if the purchaser fails to complete the sale within the agreed period. After all the law does not expect the vendor to keep waiting for the purchaser to come forward to complete the sale after paying up the balance consideration.
