Cancellation of agreement of sale


Dear SIrs,

An unregistered agreement of sale has a clause where the vendor can forfiet the advance amount and cancel the agreement if the balance amount is not paid within 3 months. Can the vendor now file a suit for cancellation of the agreement of sale without giving a notice to the other party?

thanks & regards

sivaram

 
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Partner/Advocate

Mr. Siva. It is the usual practice to issue a legal notice to a party before proceeding wiht a litigation against the party. If the other party does not comply with the demands made in the legal notice, then one may proceed with litigation. But this is not a legal precondition. 

 
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civil practice

I do not think that suit is necessary as when there is a clear clause the notice would be sufficient saying that deposit is forefeited and the agreement is cancelled.

 
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Thank you sir for your prompt responses.

 
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Better to issue notice of cancellation and forefeiture of earnest money.   Since there are contena of judgments and rules framed by various High courts that in case no notice is served prior to filing of the suit, the party doing so shall not be entitled to any costs of litigation.  

 
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