• Cancelation of unregistered sale agreement

I entered a sale agreement on printed paper to sale my own site and buyer paid 3 lakh as advance and orally said that 20/25 days as time but on paper 40 days .now after 28days i want hold the site .can i cancel and refund the money
Asked 5 years ago in Property Law
Religion: Hindu

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11 Answers

As on paper you have mentioned 40 days, you need to wair for 12 more days to cancel the transaction

Abhilasha Wanmali
Advocate, Nagpur
1021 Answers
1 Consultation

4.8 on 5.0

If cancellation clause in your agreement stated that if you cancel before 40 days then you have to pay compensation then you will need to pay compensation if you cancel now. But if after 40 days they have not done sale deed then you can cancel and you wont need to pay compensation too.

Abhilasha Wanmali
Advocate, Nagpur
1021 Answers
1 Consultation

4.8 on 5.0

Unless we read the document we cannot say what is your legal position pertaining to the conditions enumerated in the sales agreement. But yes there are some laws regarding effective transfer of property

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Sir if buyer fails to give rest of amount in 12 days that in total 40 days you can cancel same but now the buyer can seek specific performance as on paper no. Of days are 40. So now unilaterally you cannot cancel before that, only mutually it can be cancelled before it.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Sir law if any party favors to perform there part of.contract then contract can be voidable at part or instance of other party so if he fails to pay in stupulated time as agree then you can cancel it and refund not before that.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

You have to wait for 40 days

2) if purchaser fails to make payment within 40 days then cancel the agreement and refund Rs 3 lakhs received by you

3) you cannot cancel agreement before 40 days

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

You can cancel agreement by mutual consent

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Is there any provision on the said agreement for cancellation on your part

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

He can claim extra money from you, since you are cancelling the same without any reason.

You may send a notice to him with regards to the cancellation and ask him to collect his money with interest.

intimate him at the earliest.

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Dear client,

Such agreement has no legal validity, return the money , deal cancel.

Nothing will be payable extra, make sure keep proof re payment.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

A. You cannot cancel the Sale Agreement unless completion of 40 days period as per the terms of the Contract as the time is essence of Contract under the Indian Contract Act, 1882.

B. In the absence of any clause towards cancellation of Sale Agreement that you may cancel the same by issuing a notice to the buyer and refunding advance amount to his/her account by paying bank interest amount if the agreement term has not been completed. However, the buyer may file a Suit for Specific Performance of Contract before the Court to get the site as per the terms of the Agreement. Exception is only if the Sale Agreement has conferred any power to you to cancellation of agreement in different circumstance then only possible. Hence, you are advised to share Sale Agreement copy to the Advocate in your area or in this forum. In case if the buyer agreed to cancel the deal subject to penalty that you are liable to pay prescribed penalty in case if the Sale Agreement had any penalty clause towards cancellation. In the absence of any prescribed penalty, you are liable to pay bank interest over the advance money.

C. For your information, Sale Agreement's registration need not be required unless possession of property is delivered. However, sufficient stamp duty must be paid.

D. In some exceptional cases, buyer will get only advance money with interest and nominal damages from the Seller by virtue of Suit for Specific Performance of Contract instead of site registration as the advance money was not paid more than 50 to 75% of the total Sale Consideration. But the said analysis may be variable before the Court.

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

5.0 on 5.0

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