Cancel sale agreement - urgent!!
Krishna
(Querist) 25 November 2016
This query is : Resolved
On 29th Oct, 2016, I signed an "Agreement of Sale", on Rs 100 Non Judicial Stamp Paper in Hyderabad, with a builder for sale of flat for a price of Rs 20.00 lac as per market value and paid 8 Lacs as advance amount and balance payable at the time of registration of sale deed and a workorder was created for another 15 lacs. I have applied for Bank Loan for rest of the amount and waiting for approval from bank.
Now with demonetization real estate prices are expected to come down, so am planning to cancel my agreement of sale with builder and we didn't had any cancellation clauses specified in AoS.
1)Can i proceed cancelling my Agreement of sale and get my full advance amount back from builder?
2)Is there any possibility that Builder will not payback my advance amount & proceed with legal suite.
Kindly give suitable advise.
Thanks
Kumar Doab
(Expert) 25 November 2016
Yes you can. You will get a response from builder. Yes, in most likelihood. First try an amicable win-win situation and solution for both.
Demonetization is not builder's doing and fault.
Kumar Doab
(Expert) 25 November 2016
Pls don't repeat.
One thread is sufficient.
Rajendra K Goyal
(Expert) 26 November 2016
You asked:
1)Can i proceed cancelling my Agreement of sale and get my full advance amount back from builder?
Reply:
You can send registered notice for cancellation of the deal. As no cancellation clause exist in the agreement, builder may not agree. It would be not easy to get back your full advance. If you get, you would be lucky.
You asked:
2)Is there any possibility that Builder will not payback my advance amount & proceed with legal suite.
Reply:
There is no reason why should builder payback easily and fully. You are opting for cancellation, also there seem no reason why builder should go for / initiate litigation from his side. You have to proceed if you want to cancel and get your advance back.
Guest
(Expert) 26 November 2016
The straight answers to your questions are:
1) You cannot cancel agreement unilaterally without loss of advance money or whatever is specified in your agreement.
2) That depends upon if the interest of builder is harmed. So, only builder can answer your question.
R.K Nanda
(Expert) 26 November 2016
nothing to add more.
Guest
(Expert) 26 November 2016
Thanks for agreeing with me, Rajendra ji.
J K Agrawal
(Expert) 27 November 2016
Dear Experts.
the question is very simple that What is consequence of breach of a Contract?
The answer is in Section 72, 73 and 74 of law of contract.
Law is always having some certainty.
My answer is
You will get refund of money but you shall have to pay reasonable actual loss to the builder due to your breach. (suppose the price of the flat hikes, and the builder sustains no loss, you will get entire amount.)
Kumar Doab
(Expert) 27 November 2016
Agreed with Mr. J.K Agrawal.
The strategy of your counsel does matter.
Expert Mr. J.K Agrawal has posted useful strategies for benefit of readers and clients in many threads.
Appreciated.
Guest
(Expert) 27 November 2016
I partially disagree with the opinion of Shri J K Agrawal, as section 72 cannot at all be invoked in your case, as the money was can not be said to have been paid by you by mistake or under coercion.
About sections 73 and 74, I am of the opinion that both of the sections cannot be invoked together at a time, particularly in your case. Most probably section 74 can be invoked in your case. However, definiteness of the implication of the relative section can be ascertained only if you clarify, what exactly has been written in your agreement about how the amount of advance can be treated in case of breach of agreement on your part, as a buyer of the property?
Kumar Doab
(Expert) 27 November 2016
Dear LCI author @ Krishna,
There is no provision of attachment in this section 'Experts'.
You may post the extracts in this thread and/or share the document with expert Mr. J.K. Agrawal.
