Agreement to sell

Querist : Anonymous (Querist) 18 October 2011 This query is : Resolved
i had entered into an agreement to sell my plot of land to be executed within 1 year.. the purchaser had paid me an earnest amount at the time of signing the deal.. its been two years now and nothing further has been done.. do i have the right to forfeit the amount paid and sell my land to someone else..

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ajay sethi (Expert) 18 October 2011
what were the terms and conditions of agreement of sale?

did it contain a clause that in event of fialure to make payment within 1year earnest money would be forfeited . ?

since the purchaser has failed to make payment on time issue him a legal notice for cancellation of agreement

Devajyoti Barman (Expert) 18 October 2011
It would depend whether both of you agreed about the forfeiture of the earnest money.

Any way what you can always do is to ask for completion of sale agreement within a fixed time limit failing which you may treat thia s a cancelled one and proceed with agreement with other prospective buyers.

However if time was not the essence of the contract the earlier buyer may file a suit for specific performance of contract against you.

Querist : Anonymous (Querist) 18 October 2011
the agreement to sale carried the clause that the deed had to be executed within 1 year.. the time has already lapsed.. the buyer is threatening me that he will book me under case for specific performance.. the property rates have risen manifold and i am not interested in selling thte land to him.. the time for agreement has expired an year back..

Sailesh Kumar Shah (Expert) 18 October 2011
1.send legal notice as advised to secure you.
2.It is diffucult to forfeit unless clause in agreement in provide so.

Querist : Anonymous (Querist) 18 October 2011
but the buyer is saying that the deed is bound by the limitation act and is valid for 3 years.. there is still 1 year left for the period of 3 years to get over..

prabhakar singh (Expert) 19 October 2011
The problem is that this query itself is a year late and has not come when default occurred an year before.At this stage it is also useless to ask if in your agreement time was made essence of contract or not,because even if it was you have diluted its necessity.

Any way send him a notice referring the agreement and its term and also state that time was enlarged by you on his request that he shall pay you @35% enhanced consideration at the time of sale deed registration but that time has also passed
and that since inception you have always been ready and willing to perform your part of contract but he has been ever been reluctant therefore the amount of earnest stands forfeited in view of certain losses you show to have occurred to you due his non performance as despite forfeiture clause the damages can be claimed only to the extent of amount you prove to have suffered due to his default.

In general terms ,if time was not expressly
mentioned as essence of contract then your buyer has certainly smarted you at the negotiation because time is really 03 years from the date of contract in law of limitation and in your case 03 years from date of default,i mean 04 year from the date of agreement.

His smartness does require a notice on your part else he will pull you in litigation and take further 10 years by dragging you in court by suit for specific performance by serving upon you a manipulated notice just few days before suit .

Advocate Rajkumarlaxman (Expert) 19 October 2011
I do agree with our experts

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