THE MEMORANDUM OF UNDERSTANDING/ COLLABORATION AGREEMENT This MEMORANDUM OF UNDERSTANDING made on this 14 day of October 2019 between Builder and Mr. Raj s/o Late Mr. Jagdish Owners of property. Whereas the Owners Mr. Raj (Owner) have arrived to understanding with Builder regarding construction of a New Building at (address) after demolishing the old structure their. As per Understanding they have classified their share as follows :- Mr. Raj (Owner) Entire Ground Floor Entire First Floor Builder Entire Basement Entire Second Floor Entire Third Floor with Entire Terrace In addition to bearing the cost of construction of New building at (address ) after demolishing the old structure, the Builder will pay a sum of Rs. X,XX,XX,XXX/- (AMOUNT IN WORDS) to both the Owners and it's bifurcation is as follows :- Owner No.1 Mr. Raj - Rs. X,XX,XX,XXX/- (AMOUNT IN WORDS) The Builder will also pay the Rent to both the Owners for accommodation till completion of a New building at (address). At Present the property is Leasehold records of DDA and needs to be converted into Freehold. At time of signing of this Collaboration Agreement the Builder is paying a sum of Rs. XX,XX,XXX/- (AMOUNT IN WORDS) to both the Owners. Bifurcation as follows:- Owner Rs. X,XX,XXX/- (AMOUNT IN WORDS) to Mr. Raj vide Draft No. 000001 dated 10-Oct-2019 drawn no Bank of India, Rs. X,XX,XXX (AMOUNT IN WORDS) vide Cheque No. 111111 dated 14-Oct-2019 drawn on Bank of india. Owner will handover all the Papers required for conversion for Freehold to the Builder. Final Payment to the Owner will be made by (Builder) when the property is converted into Freehold. Owner will handover the Possession of their Respective portions to the Builder after Final payment in made. That both the Builder and the Owners have thoroughly understood the facts of this MOU and admit the same as correct to their knowledge and abide by the same accordingly. The Owners have put forward their respective hands in acceptance of this MOU. Signed on this day of [deleted] Mr. Builder Sign of Builder Mr. Raj Sign of Owner Sign of two witnesses My question is that on the behalf of my father Now builder put unreasonable demands in front us and after his unreasonable demands we don't want to continue this deal. We are ready to return his money, which he gave us as a token money and also we are ready to return his money he spent for making our property freehold from DDA. There is no such clause mention regarding giving double the amount token money in Memorandum of understanding. Please give me advice in this context, how we able to get rid of this problem, Is there any legal problem from builder side to us If we don't want to continue this deal? Please tell me about my legal rights. How we able to end this deal. Builder's demands are really unreasonable. Now we don't want to sign any other Agreement. Please help.?
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What are unreasonable demands raised by builder ?
do you have any such correspondence ?
3) there is no termination clause in MOU
4) builder has already spent money on conversion of leasehold land into freehold
5) if you seek to terminate agreement builder will file suit for specific performance
You need to cancel the mou with him. First send him a legal notice. If his interest is affected he may file suit for specific performance against you and you need to file suit for cancellation of mou
See the builder has to work in accordance with the memorandum of understanding if he fails you can file a suit before the district/civil court seeking cancellation of MOU.
Memorandum of Understanding, it is an under standing between the parties. If it is notarized Then notarized document is legally valid.
This is one of the clause builder add in next agreement. In that clause Builder ask money from us for reconstruction. In case any amount is payable to builder for reconstruction, then the same shall be paid by the owner. This Memorandum of understanding document is not notarized or registered. Why we give money to him for reconstruction. We already mention in the MOU to give him 3 floors in our property. And also we don't trust him anymore because his attitude and intention is not good. Few years back few incidents happened in our neighbourhood where During the time of reconstruction of building. Builder demand from owners to give him money because shortage of money. Now we don't want to continue this deal, please help. We are ready to return his money, which he give us as a token money And also we are ready to return the money, he spent to make our property freehold.
ask Builder to give in writing expenses incurred by him for conversion
offer to pay the expenses incurred and also token money and terminate the agreement
You can cancel and return the money. Builder may approach court if there is no cancellation clause or it's affecting his interest.
1. You can send him a cancellation notice.
2. In notice you can mention that you are ready to return the money taken from him with interest and also the charges he paid for conversion of property to freehold.
3. Mention the ground for cancellation as unreasonable amount which was not mentioned in agreement and you were ready to handover floors as mentioned in agreement.
If this MOU is not done by a registered deed, then the landowner can issue a legal notice to the builder intimating his decision to cancel the same and express his willingness to refund the amount received including the amount spent by the builder towards free hold procedures.
Let him go to court, the unregistered deed is not enforceable but the court will pass an order to refund the amount received from him.
You can issue a legal notice intimating him that you have cancelled the agreement and you are ready to return his money, let him accept it or go to court, you may challenge the same accordingly as per provisions of law.
The builder cannot unilaterally put unreasonable demands on you after the condition have been agreed and the memorandum of understanding has been signed by the parties.
There there is no need to sign any additional agreement with builder, if you do not want to continue with this deal as the same can be used against you if it is executed.
You can start by sending legal notice to the builder asking him that you want to cancel the deal on the basis of the unreasonable demands made by him in contravention with the memorandum of understanding executed between the parties and can also attach a cheque of the amount already spend by him for token and conversion charges. The builder can Still approach the court and file a suit for specific performance against your father, but the same can be contested. Until then, ask your father not to sign any document with the builder.
Is there any dispute resolution clause in the said MOU?
See such clause against memorandum cannot be added.You can file before court after serving him a notice first.