validity of sale agreement

saka (Querist) 27 September 2008 This query is : Resolved
Dear Expert.One of my client made sale agreement for selling his land 3 years back. Since there was a dispute in the property the agreement was made that on successfull of the dispute in court the property will be sold for Rs.300000/-. Now the court has ordered in favor of my client. But the market value of land is more than 10,00,000 now. But the party with whom agreement was made says that they will give only Rs.3,00,000 as per agreement. My question is whether the document is valid as it contains that there was dispute in the property? The time limit within which the sale is to be completed is not mentioned in the agreement?
Please reply. Thanks in advance.

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Guest (Expert) 27 September 2008
It is an agreement for a conditional sale. The sale or agreement becomes enforceable upon the dispute being settled. Now the price has gone up, you can claim the enhanced market price and the buyer if really interested may agree. or else it is prone for litigation.

H. S. Thukral (Expert) 27 September 2008
Was the agreemnet registered ?

saka (Querist) 27 September 2008
Thank u Mr.Kotresh and Harbhajan. The agreement was not registered. Can they go to court and get order in favour of them if they are not willing to pay more than Rs.300000/- as mentioned in the agreement?

H. S. Thukral (Expert) 27 September 2008
It is a contingent contract ( sec 31, Contract Act ) and can be enforced by the buyer by asking specific performance but it will depend upon further terms of the contract. Registration will not affect the agreement. Time limitis not applicable too.

ARVIND JAIN (Expert) 27 September 2008
SUBJECT TO ANY CLAUSE IN THE AGREEMENT THAT IF SELLER DONT SELL HE WILL REFUND DOUBLE THE ADVACE RECEIVED.BUYER CAN FILE A SUIT FOR SPECIFIC PERFORMENCE.

RASIK DAGLI (Expert) 28 September 2008
I agree with the reply given by Mr. Harbhan on 09/27/2008. Only way is to ask the purchaser to pay some more amount amicably and he may agree to the same instead of going for a longdrawn litigation.