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rangnath.kulkarni (nil)     06 December 2021

forfeiture of earnest money and cancellation of agreement for sale.

A written and registered Agreement for sale has condition to complete the deal in 45days.In the event of failure,the earnest money stands forfeited and agreement for sale null and void.When buyer fails to perform as per the terms to in of agreement,are
there any legal options
for him to claim charge
on property in question.


 7 Replies


After examining the agreement to sale, opinion can be given. The reasons for failure of buyer need to be established. Whether the failue is due to  negligence, contributory negligence, supervening imposibility or supervening illegality etc. among other things.


dr vedula gopinath



rangnath.kulkarni (nil)     06 December 2021

It means buyer can go to court and lead evidence about the reasons of failure and claim charge on property.
1 Like

Dr J C Vashista (Advocate)     07 December 2021

Both the parties are bound by the terms and conditions of agreement to sell.

Show the document to a local lawyer for better appreciation of facts and professional advise.

Advocate Bhartesh goyal (advocate)     07 December 2021

45 days time to perform contract was the condition and both the parties are abide by the said condition .Time is essence of contract and buyer failed to perform his part of contract in agreed time  so he is not. entitled to  file suit for specific performance of contract or claim property.

rangnath.kulkarni (nil)     07 December 2021

Since time is the essence of contract,the failure of the buyer for whatever reason,to complete the deal in the specified time will result in forfeiture of earnest money paid and contract will be null and void .The buyer is not legally entitled to file suit for specific performance by taking stand of reasons for his failure. Seller has nothing to defend .

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 December 2021

Please consult a local capable Lawyer along with the copy of the agreement referred to in your query and be guided by him/her.

rangnath.kulkarni (nil)     07 December 2021

Thanks for advice but is there any settled law on this issue and any case laws,reported judgements?

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