Hi Sir, i have made a sale agreement(not registered) with a buyer to sell the land with in 6 months and got the advance of Rs.10 lakh. But after 6 months the buyer is not intrested to buy the land. We have given another 3 months to buy if he wish to complete the transaction. But after 3 months the buyer send a legal notice of demanding the advance amount to be returned with penalty of 18%.
There is a Remedy clause in the sale agreement, if any party breach the contract which reads as follows:
"That in case the seller backs out from this transaction then the seller is liable to refund the double amount of the earnest money to the buyer and in case the buyer backs out from this transaction then his paid amount of earnest money shall be forfeited by the seller.
Also in the sale agreement one of the legal heir did not sign the agreement. my concern is whether we need to pay all the advance amount or we can gain any penalty amount from the buyer? Awaiting for reply
