Mou- validity and way out
rsn
(Querist) 10 July 2014
This query is : Resolved
Sirs
I have entered into an MOU for sale of a business and in the mou two payments by cheque with numbers were made and since one part payment was made through bank transfer the cheque for the smaller amout was returned. The other cheque was not presented as we were assured of the payment.Now the cheque is time barred and the balance payment has not been made.The MOU was on a Rs 100 non judicial stamp paper and now the prospective buyer is not making payment and delaying the same.Is there any way of getting out of the MOU and forfeit the amount received though there is no clause in the MOU of default in payment and time frame mentioned to complete the formalities was as soon as possible.
As the buyer needed a clean balance sheet shares held by me were liquidated and am now in a fix.
Any suggestions
Devajyoti Barman
(Expert) 10 July 2014
1. The MOU must have contained situation warranting breach of agreement.
2. It must have contained the escape route for this too.
3. Refer to those as both of you are bound by terms of the MOU.
rsn
(Querist) 11 July 2014
Dear Sir
Many thanks your response.Unfortunately the MOU does not contain the clause for breach of agreement nor an escape route.It was drafted in absolute faith for completion by the purchaser.Hence please advise way out?
Kind regards
RSN
ajay sethi
(Expert) 11 July 2014
it is necessary to go through MOU entered into between parties to advice . contact a local lawyer
rsn
(Querist) 11 July 2014
Dear Mr Sethi
Many thanks your response will do so
regards
rsn
ajay sethi
(Expert) 11 July 2014
thanks for your appreciation
V R SHROFF
(Expert) 11 July 2014
MOU IS NOT A RIGHT IN REM.
If cannot settle amicably, move court to decide it.
rsn
(Querist) 12 July 2014
Many thanks Mr.Shroff will make efforts for an amicable settlement or else seek recourse from the court
Regards
rsn
