Thank you all for taking the time out to answer this question.
Case: I am trying to sell a property and found a buyer. However, he will be able to pay in full in about 4 months from now. He will be giving me 10% as the advance amount.
The clause that I inserted in the agreement to sell document is as follows:
6. Time shall be essence of this Agreement. It is agreed between the Parties that in case the Second Party fails to pay the balance sale consideration on or before June 30, 2012, the First Party may rescind this Agreement and would also be entitled to forfeit the advance amount of Rs. xxx/- paid by the Second Party under this Agreement, without any protest and demur from Second Party.
My question:
If he fails to comply with these terms, what happens afterwards. Do I go to court? Can he fight for this money back? Can the advance amount used in this agreement be forfeit? Is the word "advance amount" correct terminology to use? Also, What is the worse thing that will happen in case the buyer does not pay in the allotted time frame? Can I just take the money and rip up the contract or does he have rights and can argue in court for the money back, despite the clause.
Thank you
