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BREACH OF AGREEMENT OF SALE BY SELLER

Querist : Anonymous (Querist) 29 June 2010 This query is : Resolved 
Seller Society has breached Agreement of Sale and returned money which Buyer has deposited with him for Registration of Flat. Earlier Seller had promised buyer that Bank Loan is available, but later did not cooperate with Buyer and Bank and did not deposit required documents of the project for bank to be fully satisfied with the Project of the Seller. Neither, Seller furnished the documents to the Buyer for his verification. Now, Seller has returned the money through Cheques to Buyer saying that Registration is cancelled due to non availability of loan and violating payment schedule. Buyer wants to sue Seller in Consumer Court and possibly in other Courts as well for 'Breach of Contract'.
To ensure sustainability of his case, does Buyer need to present the returned cheques sent by the Seller to the Court to prove evidentially that there was a breach by returning the money through these cheques, or presenting the covering letter which Seller has sent along with these cheques shall be good enough to prove this and Buyer is entitled to use this returned money for some other purposes?
What i mean to ask is that without loosing his rights to sue seller on account of this alleged Breach, can he ie Buyer deposit these returned cheques in his account for his regular use?
Chanchal Nag Chowdhury (Expert) 29 June 2010
If buyer wants to pursue the case, he should send a notice to the seller demanding action. The notice should state that the return of the cheque is being accepted without prejudice to his rights. the cheque should be encashed.A photocopy may be kept for future reference.


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