Agreement of sale
satyennsinha@yahoo.com
(Querist) 29 July 2011
This query is : Resolved
Respected experts,
Does an verbal agreement or assursance by a seller to purchaser in presence of witness is valid in court of law.The property ion question is a disputed property and I had agrred to buy it at minimum price and sell it to another purchaser at a premium. A public notice was isssued by the purchaser in local newspapers.now the seller informed me that he has been approached by the dispute party to settle the matter.what legal action can I take? also the seller has sent a legal notice asking me to sign it the gist of the notice is that he never agreed to sell the said plot to me nor issued verbal instructions to give public notice.
ajay sethi
(Expert) 29 July 2011
1) a verbal contract can be enforced if it is proved
Advocate. Arunagiri
(Expert) 29 July 2011
The seller can not force you to buy. At the most he can claim compensation. But, it is a very weak case.
prabhakar singh
(Expert) 29 July 2011
Does an verbal agreement or assursance by a seller to purchaser in presence of witness is valid in court of law??????????????
ANSWER
No,such an agreement with respect to immovable property is not enforceable
by process of court is my firm opinion.
Devajyoti Barman
(Expert) 29 July 2011
I would slightly disagree with Mr Singh.
Suit for specific performance of contract can be instituted on the basis of verbal agreement.
satyennsinha@yahoo.com
(Querist) 29 July 2011
Thank's a lot for your valuable opinion's,but I am expecting a more detailed opinion, I can post all the details.
with regards
satyenn sinha
Advocate Bhartesh goyal
(Expert) 30 July 2011
Mr Barman is right,suit for specific performance of cotract can be instituted on oral agreement.
prabhakar singh
(Expert) 31 July 2011
Mr. Barman I would be last person to controvert your statement**Suit for specific performance of contract can be instituted on the basis of verbal agreement.**
My statement was restricted to immovable property**(No,such an agreement with respect to immovable property is not enforceable).**
I understand that an agreement,under general contract of law,can be ORAL or in WRITING, and all agreements originates first in oral form.
I also under stand that AN AGREEMENT ENFORCEABLE BY LAW IS A CONTRACT AND ONE NOT ENFORCEABLE BY LAW IS SAID TO BE VOID.
I also understand GRANT OR REFUSAL OF A SPECIFIC RELIEF IS THE JUDICIAL DISCRETION OF COURT AND ITS DENIAL OR GRANT IS DEPENDENT ON AN ISSUE THAT IF DAMAGES CAN BE QUANTIFIED IT SHALL BE REFUSED.
I AM ALSO AWARE THAT IN CASES OF IMMOVABLE PROPERTY USUALLY SPECIFIC PERFORMANCE IS GRANTED .
BUT I WAS ANSWERING A QUERY WHICH READ:***Does an verbal agreement or assursance by a seller to purchaser in presence of witness is valid in court of law****
IN UP, WHERE FROM I BELONG TO, LAW IF PUT PRECISELY ,IS THAT ANY AGREEMENT RELATING
TO IMMOVABLE PROPERTY MUST BE REGISTERED BARRING A LEASE FOR A PERIOD BELOW A YEAR.
THIS LEADS TO ME TO INFER THAT EVEN A CONCLUSIVE ORAL NEGOTIATION THOUGH HAVING TAKEN SHAPE OF AN ORAL AGREEMENT,HAS NOT ACHIEVED A SHAPE WHERE IT CAN BE CALLED A
"CONTRACT"WITH IN MEANING OF SECTION 2(h)OF
THE CONTRACT ACT,RATHER SUCH AN ORAL AGREEMENT IF SOUGHT TO BE ENFORCED,SHALL BE CALLED VOID AS LAID DOWN BY SECTION 2(g) OF CONTRACT ACT FOR WANT OF REGISTRATION GETTING HIT BY SECTION 17REGISTRATION ACT,THEREFORE I HOLD THAT MY VIEW EXPRESSED WITH REGARD TO QUERY
IS ACCURATE AND CORRECT TO THE EFFECT THAT ORAL AGREEMENT WITH REGARD TO IMMOVABLE PROPERTY IF SOUGHT TO BE ENFORCED WITHOUT REDUCING IT IN WRITING AND GETTING THE SAME REGISTERED SHALL BE CALLED VOID AND NOT ENFORCEABLE BY LAW,AND NO RELIEF ON BASIS THEREOF CAN BE GRANTED AT ALL EXCEPT THAT ANY BENEFIT ARISEN TO ONE PARTY SHALL BE ORDERED TO BE RETURNED,AS IN THIS CASE IF SOME MONEY AS EARNEST etc.,was paid.
IN SUCH CASES IF ORAL AGREEMENT IS PROVED TO HAVE TAKEN PLACE THE CAUSE OF ACTION IS THAT THE OTHER PARTY AFTER HAVING AGREED TO PROCEED FOR FURTHER STEPS IS NOW DENYING TO SIGN AND REGISTER THE AGREEMENT,THE COURT MAY GRANT A MANDATORY INJUNCTION AGAINST IT TO PERFORM LEFT FORMALITIES OF IT AND ON FALURE IT CAN WELL PERFORM ON ITS OWN BUT GRANT OF SUCH A RELIEF IS NOT A SPECIFIC PERFORMANCE OF CONTRACT,THAT IS A MANDATORY DECREE TO COMPLETE AN AGREEMENT AS PER LEGAL REQUIREMENT SO THAT IT CAN TAKE THE SHAPE OF A LAWFUL CONTRACT, ENFORCEABLE BY LAW.
