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Legal student (partner)     28 December 2009

Payment made without entering into agreement to sale or any

Dear All,

1 and half year ago my client had given advertisement to sell falt. One party given cheque of rs 1 lacs and cash of 50000. MY client has deposited cheque and given reciept of rs 500  for cash payment. Thereafter buyer did not  turn to buy house and client has given advertisemtn and sold out flat to another buyer after six  months.

Now my lcinet and fist buy did not enter into any contract or agreement. there was one bank transaction and one cash transaction.

The person has made police complaint against my client on the ground of fraud that my client has taken money  and sold flat to another person.

Police has closed the complaint on the ground that it is civil matter.

Can anyone advise about what is the position of law in this matter? Can anyone claim payment made without any contraction evidence.?

Can my client can claim that payment made for professional services / remuneration and not for house sale.


 3 Replies

Parveen Kr. Aggarwal (Advocate)     31 December 2009

For replying your query, some more facts are to be ascertained:

1. Whether the first buyer was previously known to your client and whether they had any other dealing at any point of time.

2. In what profession your client is engaged and how he could have got remuneration for his professional services from the first buyer.

3. What was mentioned in the receipt of cash payment as to for doing what the amount was being received.

4. What was got recorded by both the parties in the statements made before the police.

1 Like

Legal student (partner)     01 January 2010

Dear Praveen

1. The first buyer was previously not known

2. Client is CA

3,It is plain money reciept of rs 500

4. First buyer has given application of complaint but plice has not registered FIR and quashed th complaint on the basis that it was a civil case.So my client has not given any statement. First buyer given complaint that my client sold house to other after taking money from him.

Parveen Kr. Aggarwal (Advocate)     01 January 2010

Although the total sale consideration and other condtions of sale have not been spelt out in the query yet your client has to explain on what account he received money from stranger. As law permits oral agreement to sell of property so, the amount received as earnest money may be liable to refund in case of backing out by the sellter. But in the instant case, the buyer has not turned up for completion of the transaction of sale, it can be presumed that he failed to perform his obligations under the oral agreement and his amount of earnest money stood forfeited. But all these facts are to be proved by leading evidence which can only be oral evidence in the given case. The law is clear that agreement to sell may be oral or in writing and as such on proof of terms of oral agreement to sell it will be at par with written agreement. You client cannot claim the amount towards professional services/remuneration as he has not provided any such services.

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