It is not clear what false case he is planning or doing.

If he has cancelled the agreement by conduct or words of mouth then send hima written cancellation notice with the refund of earnest money though money order.

Once that is done your liability with regard to earnest money goes and he loses any opportunity to implicate in false cases.

If he still threatens then complain with the local police with the charges of criminal intimidation and blackmailing.

Verbal agreement though is valid form of agreement if often difficult to approve.

moreover forfeiture of whole amount in often disapproved the contractual disputes.

hhence do not rely upon verbal agreement and you must refund the money.if you wish you can deduct a nomical portion to defray the costs for holding this agreement.

1. If there was just verbal agreement then though valid the same is hard to prove, I would advise you to return the money after deducting a nominal amount. There is no point of entering into a leal dispute for this meager amount.

Also take care of the fact that, you get the same transcribed on some paper that you have returned the money.

Regards

Sir,

You are stating here that the earnest money was paid without any sale deed or in better terms, the agreement to sale as sale deed would be executed once sale is completed.

Also you haven't mentioned how this transaction has taken place, whether by cheque, cash or any other means.You haven't mentioned any deed for liability to pay. Please furnish in which court he is harrasing you and under which sections, so we that can proceed in correct remedial direction.

1) refund the earnest money to buyer

2) since deal was cancelled and there is no forfeiture clause in your agreement you must refund the earnest money

amicable settlement is best option

2) litigation is long drawn and expensive proposition

3)refund his earnest money

Hi, you have to contest the case and after deducting liquidating damages you have repay the amount which you have received.

If there was no written agreement and the buyer has no proof of the receipt of money then you need not worry as he will have no case to proof it.

Hope my reply helps you.

Respected sir...

i would like to advice you socially rather than legally ..sir on this 5% you are lossing a gd friend ....you can also took that money as he has not any proff that he gave you any amount ..he will not be able to take any legal action against you ...but as your deal was not done as said by you than we are such a selfish that we can posses money even after the deal was not done ..so i personally request you to give his money back as we are not entitle to it socially or legally...but yes you have an option to negotiate it ...in which both the parties were agree...

thanku

Hi , either he can file a recovery suit , for that he do not have any proof of payment .. If he files a criminal complaint , again there is no agreement of joint business that was executed as per his story .. He has no evidence to support his story .. Don't worry , there is nothing strong that he can do

If this advance/earnest, was handed out to you in case, there is no basis in the allegations levelled by them upon you.

There is no substance in their allegations for they have no evidence to substantiate the same.

From the given facts, it seems that you must have received the money through cheque. Please let us know. See, in law everything is to be proved by documentary evidence. You have no written agreement but on the other hand he must be having proof to have given to money. In case, it is the case then maintain good relation and return his 5% otherwise, contest the case and you have to return the said amount with interest resulting in bad relation. It will be a lesson for you that when you deal with someone in future particularly for sale of property or even otherwise,it should be reduced in writing though he may be your close friend, brother, sister or any other relation. Your good relation with the buyer are apparent when he is making false case against you.

Since the buyer is no more interested in buying the property, you are required to return the earnest deposit money after few deductions towards the cost incurred by you in this regard.You cannot refuse to return the same, he may file a recovery suit agaisnt you on the basis of the evidence of the receipt of this amount by you befog a court of law.

The court may pass an order to refund the entire amount with interest if he is able to prove the deposit with you with litigation cost.

It was pre decided verbally that the amount will be forfeited if the deal is cancelled through buyer's end. And the false case is that we convinced him to get into business with us but we didn't begin with it till now.

The oral or verbal agreement are not enforceable i law.

You canot claim exemption on this ground nor you can forfeit the amount without any valid reason.

Dont make simple things complicated, becasue at the end of the day you will be liable to pay him, hence instead of spending more and then returning his money, you can talk to him and negotiate the settlement and be beneficial by taking wise decision at this time itself.