• Cancelation of Agreement to Sale

Hello, I have done an agreement to sale with prospective buyer. As per the terms, 80% of agreed sale amount will be given within 30 days of agreement. Agreement also mentions that Transferor is entitle to cancel the agreement in case amount is not received. In the event that amount is not received and agreement needs to be canceled by me, what is the process of cancelation
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1. send him a notice, with reason, for cancellation of agreement.

2. notice is required under section 3/4/73 Indian contract act.

3. if mode of payment and time period is mentioned in agreement, it shall be treated as breach of agreement if said condition is not obeyed. this act gives you a right to cancel this agreement.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

A. If the Agreement to Sale was registered that both parties shall cancel the same before the same sub registrar office to remove entry in Encumbrance Certificate for future transaction.

B. In case, in the absence of registration, you need to issue a legal notice through registered post to the purchaser by highlighting the crucial point as established in the agreement. In addition to this, issuing legal notice with respect to cancellation of agreement is mandatory. Hence, registration of agreement is immaterial under this context.

C. Finally, either you may refund the token advance or confiscate the same amount subject to penal provision in the agreement.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

1) is the agreement for sale registered ?

2) if it is not regsitered issue legal notice to purchaser citing the clause which has enabled you to cancel the agreement and end it by saying 'therefore, you have cancelled the agreement of sale herewith'. You may forfeit the earnest money , if any mentioned in the agreement, for violation of the clauses of agreement.

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

5.0 on 5.0

If the agreement is to be unilaterally cancelled by the seller then he should serve a lawyer's notice in this regard to the buyer. Needless to add, the unilateral cancellation will have legal sanctity only if the other party has breached his obligations under the agreement.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

If the buyer is not fulfilling the conditions of the sale agreement then the vendor can issue a notice intimating the cancellation of the sale agreement to the buyer after the expiry of the said agreement and can refund the advance money received as per the terms of the condition.

Send the notice by registered post.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

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