Termination of Agreement
Querist :
Anonymous
(Querist) 27 January 2011
This query is : Resolved
We had entered into an agreement for the development of one of our property in Mumbai in November 2006 with a developer. However, as he was not in a position to develop the same due to some financial losses suffered we tried to terminate the agreement. In view of the same he had filled as suit in the city civil court to restrain the owner from terminating the agreement. However, after approximately 18 month he applied for a settlement to the court and the same was settled on a new consent terms and agreement. As per the new agreement he was supposed to execute the construction activity within 1 year of signing the agreement. Also he had to obtain the permissions from the municipal authorities and negotiate with the three existing tenants.
The period in the agreement was complete in July 2010.We had sent him a termination notice in December 2010.However,his lawyer has mentioned that “the agreement dated 27.07.2009 does not provide any provisions for cancellation/revocation of the agreement in the event of failure to perform the obligations arising out of the said agreement.”
What does the law mentions about terminating such agreement where the developer is incapable of proceeding with the construction activity and fail to keep up his promise as per the agreement signed.
