• Agreement registration cancellation

I have sold a residentially converted land, in 2014 October, buyer entered agreement for sale paying 50 lacs, time limit was 6 months, we mentioned forfeit clause also, but they did not get registration done on time, they again came back and seek permission for development for sites, saying that they have good marketing abilities, even then they did not finish , the deal , they developed 33 sites and Kantha is in my name, no other registered document made other than agreement, the consideration was around 1 crore 80 lacs, I have suffered a lot because of these people, what do I do now to cancel the agreement, one of our laser said they don't have any rights coz , we mentioned forfeit clause. Please do suggest.
Asked 4 years ago in Property Law
Religion: Hindu

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14 Answers

Dear Client,

Forfeit clause would have evoked if you have not agreed for extension and restricted to six months execution period.

Was there any second time limit when they again come back ?

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

See they don't have any right and the sight is in your name then also the agreement need to be cancelled you file a suit for cancellation of the agreement and claiming of damages for the loss suffered by in the civil court.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1) it is necessary to peruse agreement entered into by you with buyer to advice

2) if buyer has failed to make payment you can cancel the agreement and forfeit advance money received by you

3) issue notice to buyer that agreement stands cancel as he has failed to make balance payment within stipulated period

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

If you have mentioned forfeiture clause and have stick to initial agreement than it was ok, but you entered again oral agreement and granted him permission for construction.

So here need to review your both the agreement and scenario of the case.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

1. Unless the time mentioned to complete the sale was made ' essence of contract' due to expiry of time neither the agreement can be cancelled nor the advance can be forfeited.

2. Forfeiture of earnest money is allowed only in exceptional and rare occasions and mere expiry of 6 months as mentioned in the agreement is not enough.

3. However you can give the buyer a final notice to complete the dale ind default of which cancellation of agreement can be initiated in which event you will have to refund the money as well.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

you can cancel the agreement as the purchaser has failed to comply with the terms and condition of the agreement.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

Dear Sir,

Get issue a legal notice stating that amount paid as advance is fortified and contract is cancelled. Further claim compensation for breach of clauses agreement.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

issue a notice to buyer terminating the agreement

the buyer will try to pressurise you by filing suit

but in that suit he will have show his readiness and willingness to complete the deal

as he himself did not turn up for registration and has also not made balance payment despite lapse of stipulated time of 6 months, he will ultimately fail

but he may get a stay

suit will take time to resolve

once he files suit you will have to resist it aggressively by taking steps to have it dismissed by filing rejection application

also in your termination notice, return the buyer's money after deducting the agreed money to be forfeited to you in case the buyer fails to complete the deal

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Issue a legal notice to developer that you are canceling the agreement since they have not fulfilled their part of promise and that time is essence of contract and they have not got sale deed executed in time by paying remaining consideration amount. And also state that you are forfeiting the amount payed by them

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0


As per the clause stated by you, they have no right and they may not claim the money. But, if you wish you may proceed against them for specific performance of contract.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Dear Sir,

It is very simple, get issue a legal notice and cancel the agreement as he violated the terms. There are other builders who are waiting for such opportunity. Sell it to some body else. You will make big profit out of it. Make use of any of the following and say it is void agreement.


According to Section 2(g) of the Indian Contract Act, 1872 an agreement is not enforceable by law is said to be void.

Section 24 to 31and 56 of the Indian Contract Act, 1872 lay down the provisions relating to the agreements which are declared void are as follows :

(i) If consideration and objects are unlawful in part. ( Section 24)

(ii) Agreement without consideration(Section 25)

(iii) Agreement in restraint of marriage (Section 26)

(iv) Agreement in restraint of trade (Section 27)

(v) Agreement in restraint of legal proceedings (Section 28)

(vi) Uncertain Agreements (Section 29)

(vii) Wagering Agreement (Section 30)

(viii) Agreement contingent on impossible event (Section 31)

(ix) Agreement to do impossible acts (Section 56)

(x) Agreement to minor

(xi) When both parties are under mistake of law.

All agreements are not enforceable by law and therefore, all agreements are not contracts.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You can communicate your decision to cancel the agreement in writing and send it by registered post.

Even though you may invoke forfeiture clause, you can't refuse to refund the entire booking amount.

You may deduct the administration cost and refund the balance to avoid future legal problems.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

1. Issue legal notice to the buyer regarding cancellation of the agreement.

2. Issue a notice to registrar to cancel the registered sale agreement.

3. Register the cancelled sale deed with registrar.

4. Never attempt to sell the land to new purchaser. if you do so then it would lead to double registration and its against consequences.

Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

Hi sir

It’s well and good case you file a suit for specific performance against them automatically they will come to you... don’t go for cancellation or else they will file case against you so before they take step you take step and file suit on them failure to perform the contract and the court will grant the compensation for that...!

Do call me for further details

Koushalya Pattan
Advocate, Bangalore
174 Answers

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