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Advocate Rakesh Raja (d)     15 August 2011

Breach of contract

A is the owner of a property and he agrees to sell to B for a sum of4 crore. A and B enter into an agreement for Sale and as an token amount of 40 Lakh has been paid by B, the rest amount shall be paid within 7 months.

The problem arises with A is that B has not paid the rest amount within 7 months. A has send a Legal Notice to B regarding the Payment but no reply was send by B.

 

Now A want to sell the property to some other person. Can  A sell the property to other person while the agreement for sale was with B.

What other Remedies are available for  A  under Civil as well as in Criminal Law??



Learning

 3 Replies

akash kapoor (*************)     15 August 2011

sir,

in the indian contract act this is a breach. but for the sake of damage the rule of the case of headly v baxendal is to be seen. was timw an essence of the contract.  the contract is not binding on A  as the consideration is not paid. but for safety sake he must first file a suit for damage on B. thsi will validiate the claim of A.

Naveen Kumar (service)     16 August 2011

Sir, Mr.A has waited the statutory period of 7 months as per the agreed terms after lapse of 7 months 'A' has already issued legal notice with regrding to registratrion of property.  So A has all the right to sell the property to some other persons.  For his safety he should file a suit. 

Mahadeva Rao G (ADVOCATE)     16 August 2011

First of all  A  has  to  send  legal notice  to B  to perform his part  of the obligation  as per  the  agreement of sale   while  mentioning  he is ready and willing  to  perform his part of the obligatiion with  reasonable sufficient time mentioned for the same  to  reply  and   ensure  A  adds  a  clause  that  if   B do  not  reply  within  the  aforesaid  reasonable time as mentioned  in  the  legal notice then  the  agreement of  sale  stands to  get cancelled  automatically.        Subject  to the other  terms  and  conditions  as  enumerated  in  the  agreement  of  sale  regarding  forfeiture  of  advance amount  for  non  performance  of  obligation of  the opposite party  to  the contract.     Then  there  is  always  option of  filing   a  suit  for  SPECIFIC  PERFORMANCE of the  agreement of  sale  depending  upon  the  situation.

UNless  and  until  the  contract  is  not  cancelled thro  the  process  of   law   A   cannot  create  any  3rd party interest  in  the  property.

Mahadeva  Rao G. 9845285555  ADVOCATE   BANGALORE


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