ON BREACH OF AGREEMENT OF SALE OF PROPERTY

Querist : Anonymous (Querist) 29 June 2010 This query is : Resolved
Seller has Breached Agreement of Sale and if this Breach is proved in the Court, then what remedies are available to the Buyer to enforce upon Seller through Courts.

Actually, Seller has Breached the Agreement because he cannot supply the flat to the buyer which he stated in his advertisement for 'Offer of Sale through advertisement on the website', that these flats can be used as resort/Service Apartments and tourists can be accommodated in these flats for generating good amount of rentals.

Since despite repeatedly asking by the buyer that please furnish documentary evidence to prove beyond any reasonable doubt that such permission from competent Municipal Authorities actually exists for such commercial/ semi-commercial usages of the flat, the Seller cancelled registration of the flat and returned the money to the Buyer party.

In this situation, since seller knew very well that flats can be used for Residential purposes only, and not on commercial basis, he decided to Breach the Agreement of Sale.

Now, can Buyer claim damages through Court saying that he registered and entered into Agreement based on the promises of the seller which eventually proved to be False, and since seller cannot deliver flat having commercial usability as promised by him, therefore, by this Breach by the Seller there is a loss suffered by the Buyer.

How Buyer can claim damages from seller to extract maximum 'Damages'.?

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Chanchal Nag Chowdhury (Expert) 29 June 2010
It depends on the terms of the agreement and/or advertisement. The chances for claiming damages, except for losses actually suffered e.g. towards regn. charges or interest,are slim as seller can very well claim lack of permission from Mun. authorities as a ground. This is what is commonly known as 'supervening impossibility'. Further, as the seller has promptly returned the money, there does not seem to be any dishonest intention.