token money

Querist : Anonymous (Querist) 16 August 2010 This query is : Resolved
Hi,
I have received token money from the buyer now due date has been gone then also i have not receive the final amount.Problem is that buyer is backing out though i have the agreement with due date but i have not mention that if deal is cancelled i will not pay the token money back.The token money which i have receive with that i have foreclosed my loan.Now i m in mess what to do.Request you to pls advice me on this.

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s.subramanian (Expert) 16 August 2010
You need not worry. He cannot claim the advance money back since he is barred by the Doctrine of Estoppel under Sec.115 of Indian Evidence Act.On his assurance to purchase the property and payment of the advance money,he made you discharge the loan dues in the hope that he would pay the balance amount and complete the sale. By his positive acts you have prejudiced yourself with the discharge of the loan dues which you would not have done otherwise. Threfore he cannot go back and ask for the return of the advance money. You have to be ready with the documentary evidence for the discharge of the loan dues after the payment of the advance money to you. Good Luck.

R.Ranganathan (Expert) 16 August 2010
I disagree with Mr. Subramanian. The buyer can ask for the refund of the amount within 3 years if the sale is not concluded. But you don't have to worry about the same now till the buyer claims it from you. You will have ample time to repay the amount after deducting any damages/costs incurred including any loss you suffered due to this cancellation of sale.

Devajyoti Barman (Expert) 16 August 2010
Yes the rule of estoppel does not apply in agreement for sale if the purchaser refuses to complete the sale.

bhagwat patil (Expert) 17 August 2010
for his refund of tokan 3 years period is there. he cannot claim on property if there is no breach of conditions on ur part.