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Sashi Kumar (Owner)     15 December 2012

Agreement to sale

I am the seller and I entered into a sale agreement and I received 10% bayana from the buyer. The buyer was supposed to pay part payment within a month of the agreement according to the contract and the final payment at the time of registration within 3 months. The buyer did not make the part payment on the specified date, after many request the buyer did not make the payment. The registration date according to the contract has already expired and the buyer did not make the part payment or the final payment. After the contract expired two weeks later I gave the buyer another chance to make full payment in 30 days. Three days before the new registration date the buyer emailed me copies of the demand draft that he is ready with all the payment. But now due to family problem and health problem I do not want to sell the property. I have verbally offered the buyer to take double and cancel the contract mutually but buyer refused and said she wants to buy the property. So now I have sent the buyer a cancellation notice saying due to buyers non performance the contract is cancelled and buyers money is forfeited. Now the buyer is planning to file specific performance law suit to force sale of the property.

There is a Remedy clause in the contract if any party breach the contract which reads as follows: 
"That in case the first party backs out from this transaction then the first party is liable to refund the double amount of the earnest money to the second party and in case the second party backs out from this transaction then his paid amount of earnest money shall be forfeited by the first party."

There is NO clause for specific performance for sale of property in the contract.

My question is as follows:
Have I breached the contract or has the buyer breached the contract?
If I have breached the contract can the court order specific performance to sell the property even when there is a remedy clause available in the contract.
What I need to do to avoid specific performance of sale of property.



Learning

 1 Replies

bhagwat patil (Property due diligence 9422773303)     15 December 2012

Whatever amount u have taken as a bayana ie. 10% of the total consideration deposit to buyers a/c. By way of cheque or cash and keeping evidence as the amount is deposited by u on bank deposit reciept.It will show your bonafide as no breach of of contract on ur part, but the cancellation of agreement.If the buyer withdraw the part of that amount u r safe.

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