Agreement of Sale or the agreement to sell becomes a sale when certain conditions are met.
A contract is a formal or verbal agreement that is enforceable by law. Every contract must have an agreement but every agreement is not a contract. The section 4(1) of the Sale of Goods Act, 1930 states that – ‘A contract of sale of goods is a contract whereby the seller either transfers or agrees to transfer the property in goods to the buyer for a decided price.’
In Section 4(4) of the Act, it is maintained that for an agreement of sale to become a sale, the time has to elapse or the conditions have to be fulfilled subject to which the property in the goods is to be is to be transferred.
The section 4(3) of the sale of Goods Act defines it as, “where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.”
The crucial elements of a contract like competency of parties, the legality of object and consideration etc. have to be present like in any other contract.
The contract of sale may be absolute or conditional.
As per the Indian Registration Act, 1908, any agreement for transfer of any interest in an immovable property of value more than one rupee, is required to be registered. ... The ownership of the property still remains with the seller.
The agreement for sale is valid for three years. If there is a negative clause in theagreement, say, the buyer has to register the property within three months', then, the limitation is extended by such period.
you can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement. ... Thus, you can proceed to cancelthe agreement by issuing a legal notice to him through your lawyer. However, you have to refund the money paid by the purchaser for booking your flat.
If the non-breaching party is a seller, the seller can retain the good-faith deposit and terminate the contract, sue for breach of contract to obtain money damages, or file suit for specific performance (ie. Making the buyer perform within the terms of the contract, or complete the home sale)