Land agreement: advance paid but failed to fulfill the agreement
mrgop
(Querist) 16 March 2012
This query is : Resolved
Party A entered into an agreement with party B to buy the 40cents land owned by B at the rate of 3lakh/Cent within 6 months, and A gave 25 lakh as advance while signing the agreement. But, A could not arrange the balance amount within 6 months and failed to fulfill the agreement. A is not in a position to pay the balance amount in near future also as his business is running into loss.
Party B is not ready to give back the money after taking a reasonable amount towards compensation. So, can party A approach the court to get the refund of advance after deducting a reasonable amount towards compensation? What are the general rules applicable in case of such an agreement failure?
adv. rajeev ( rajoo )
(Expert) 17 March 2012
Issue notice to B to refund the given money within a given time , if he failed then file a suit for recovery of money.
mrgop
(Querist) 17 March 2012
If party B has to refund the full amount given by party A as advance/token money in case of the failure due to the fault of party A of the above said agreement, whats the actual purpose of advance/token money?
Does it not guarantee any compensation to any of the parties in case of agreement failure?
In general:
Whats are the legal rights of both parties in case of such an agreement failure?
ESTHERPRIYA
(Expert) 17 March 2012
yes you can go for a mutual cancellation and recission of contract and settle the issue amicably or thorough an advocate instead of approaching the court.
SAINATH DEVALLA
(Expert) 17 March 2012
You should always provide us the contents of the agreement.Otherwise we have to provide you only half knowledged advice.If the seller differs from the agreement you can file a case in the court of law.Is there any other documentation for the 25 lakh paid.
Otherwise go for a mutual settelement of the dispute.
