cancellation of Agreement to Sell
g v venkatarao
(Querist) 19 November 2009
This query is : Resolved
Sir,
As the vendor is unable to obtain the required documents for execution of sale deed so as per the refund clause the vendor is liable refund the advanced amount for that the Vendor is ready to issue a cheque for the refund amount and demanded the Original copy of Agreement to sell at that instant. If in any case if the cheque is bounced, what precaution shall the Vendee take?
Pl suggest me does M.O.U or any thpe of document which will safe guard m.
Raj Kumar Makkad
(Expert) 19 November 2009
Generally it is presumed that the cheque has been issued in discharge of valid liability but this presumpion is rebuttable and if the holder of the cheque has fradulantly presented the same with his banker fully knowing that he has not to get any amount from the rawer of the cheque then no offence has been committed under section 138 NI Act and as in given case, you can safeguard yourself accordingly.
n.k.sarin
(Expert) 19 November 2009
In my view the vendor has no right to demand the original copy of sale agreement.It shows his bad intention.you can issue a receipt of refund of money giving reference of the said cheque and agreement.I think it is not in your fevour to deliver the original copy of sale agreement to the vendor.
niranjan
(Expert) 19 November 2009
Better do not return the agreement until the cheue is encashed.
Devajyoti Barman
(Expert) 19 November 2009
If the cheque gets dishonoured you can can initiate criminal prosecution against the vendor under section 138 of N.I.Act which puts strict liability upon the drawer of the instrument. To safeguard yourself you better ask for encashment of cheque before delivering the original agreement for sale or demand for return of money through cash or DD.
ESTHERPRIYA
(Expert) 25 November 2009
Issue a legal notice calling him to repay the advance amount with interest if the time stipulated in the agreement is expired and tell him about the civil liability of compensation also to protect your rights. In case cheque is issued. Get the signature of party in the agreement of sale by stating hte cheque number and details as a added precaution.
g v venkatarao
(Querist) 28 November 2009
Thank you very much for sparing your valuable time for co-operating me in this aspect and once again I am appreciating for your reasonable direction
