Validity of penalty clause in Sale Agreement
Pandri
(Querist) 14 May 2011
This query is : Open
I entered into a Sale agreement to purchase a site last year. Due to Govt regulation/Society issues the seller is unable to produce all documents. A clause in the sale agreement mentions a penalty of 2.5 % interest per month on the advance paid. My questions are:
a) Is there any rule/guideline on the interest rate for the penalty. In other words is 2.5% enforceable?
b) Are there any instances of decrees involving the above point
c) I have been in written communications (email and registered letters) with the seller. How do I assess the validity of the sale agreement?
Appreciate your help in answering the above questions. Thanks a tonne.
