Time Limit for Execution of Agreement of Sale/Purchase

Indian limitatin act has to be followed.

You have not fully answered the  question.

Mr Venugopal

In case there is a time limit fixed say 3-4 months as asked in your query, then the agreement becomes null & void after that period and the vendor doesnot stand to lose, however if any period is not specified in the agreement then the provisions under the limitation act will come into force. Further either the vendor or vendee has option of filing a suit for specific performance if either of the party do not honour the agreement.

I endorce the opion of Mr. A.V. Vishal Advocate.

Vishnu P. Srivastava

I agree with Vishal ji.

If the agreement mentions time limit, say, the buyer has to pay the remainder price within stipulated time, the buyer has to pay the remainder and conclude the contract. If the buyer does not pay the amount within specified period , the seller has option to rescind the agreement by giving one month's notice. If however buyer does not pay within stipulated period and the seller does not take any action, it means he has acquisced in this and has to settle for the price while entering in to agreement. Law does not help laggards!

In case there is the time limit of 3-4 months in the agreement but the sale is not executed within time settled, the vendor may terminate the agreement by serving  a Notice upon the purchaser and may forfeit the money paid by the purchaser in advance.

The purchaser has an option to file a suit for specific performance of contract and in that suit the purchaser is required to prove that he was ready to pay the balance sale consideration and to get the same deed executed but the vendor did not do so.

If the purchaser succeeds in proving this, he would succeed in the suit otherwise the suit would fail.

Whereas the question of limitation is concerned, the Limitation Act provides that the purchaser has a right to file the said suit for specific performance of contract within a period of three years from the date of arising cause of action.

Thank you very much for your opinion Mr.Vishal,Sir. Though I mentioned about the time limit and the non-performance  by the buyer in another thread some of your colleagues here just stated that the buyer had the right /option to enforce the Sale within 3 years. It did  not make sense,either common or legal, to me and hence this new thread. Thanks once again for replying my query, Sir.

The limitation is three years from the arising of cause of action. The internal time for performance of contract is fixed in the agreement 3 or 4 months.  But the sec 16 (c) of Specific relief act which play the important role in executing of specific performance of contract. If the purchaser is ready and willing to perform only entitled  to get the agreement executed.  otherwise he cannot enforce to execute the sale deed

vishal ji,pl.tell after serving noticeto cancel agreement and forefeit advance money seller can sell property to another person.

can vendor enter into agreement to sell with other person after  rescinding the agreement with first vendee and forefeiting his advance amount by serving notce and to which no reply has come pl .guide it is very important.

Mr. Pawan,

The vendor has an option to forfeit the advance amount if the vendor remained ready and willing to execute the sale deed during the continuance of the agreement to sell and the purchaser did not pay the balance sale consideration and also did not get the sale deed executed in his favour. After forfeiting the amount, the vendor may sell the said proeprty but in that case the purchaser has a right to claim for specific performance of contract by filing a suit within a period of three years from the date of arising cause of action.

Mr. Agarwal,Sir, in that case the defaulting and scheming first vendee can keep on postponing the sale of the property by the Vendor to any other person for the next 3 years just by applying his "right to claim for specific performance of contract by filing a suit within a period of three years from the date of arising cause of action" and yet not carrying out the sale for the 3 year period. So in reality does it mean if these irresponsible people(1st Vedee) want they can virtually obstruct any sale being done by the Vendor for the next 3 years even though they themselves do not have the intention of carrying out the purchase ?

sh.venugopal has rightly replied which show that law is in favour of defaulting vendee.it means it is not safe to sell within 3yrs from date cause of action arises. IN MY CASE PL GUIDE FROM WHICH DATE CAUSE OF ACTION ARISES.DATE OF AGREEMENT 05-11-2008 WHEN ADVANCEAMT.WAS RECEIVED.LAST DATE OF REGISTRY WAS 31-03-2009 REGISTRY NOT EXECUTED INSTEAD PAID SOMEADDITIONAL AMT ON 04-04-2009 AND TOOK REGISTRY TIME EXTENDED TO 30-04-2009. AGAIN REGISTRY NOT DONE TILLDATE