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Ramya Sri (Student)     20 September 2013

Sale agreement time


I'm Having 20 Acres of Agriculture land .

On 2011 december I (Sale Agreement ON  100 Rs bond paper)sell my land for 55 laks.

The buyer pay the 21 lacs and he stopped the payment till now (Last date of payment is March 2012)

he didn't pay the remaining amount .

Wot should i do now. Now the land value is 3 times high.

Now the Agreement is valid or Not? It is not registered


And one more imp thing is in the agreement we DO not mention (IF AMOUNT IS NOT PAID THE AGREEMENT IS CANCELLED)



 9 Replies

adv.raghavan (Advocate,9444674980)     20 September 2013

the agreement is valid for 3 years, since there is no default clause. u can ask the concerned party perform the contract or u can enforce for a CANCELLATION agreement with the concerned person.

Ramana Murthy (Engineer)     20 September 2013

Hi Raghavan,

I have entered into a sale agreement with a Vendor with following clause



Vendor and Purchaser covenant that the time is the essence of this contract and subject to the terms of this agreement, both parties shall honor and perform their part of contract.  Sale Deed shall be executed and registered within one month of this  agreement date unless there is a mutual consent for either extending validity time of this agreement or cancelling this agreement for the reasons either technical or beyond the control of both parties.

In the event of default by the Purchaser, regarding his duties and obligations under this agreement, the Vendor shall be at liberty to cancel the agreement and return the advance amount to purchaser.

In the event of default by the Vendor, regarding his duties and obligations under this agreement, the Purchasers shall be entitled to receive the refund of advance amount


Now the vendor want to willfully back out of the agreement and payback the advance. But I don't want to cancel the agreement and want to pay the remaining sale consideration hand get the agreement executed. Given the above verbage in sale agreement, do I have a case to force the vendor for specific performance of sale deed execution? Or am I entitled for only refund of the advance if the vendor want to one sidedly backout of the agreement.


adv.raghavan (Advocate,9444674980)     21 September 2013

u didnot specify when u have entered the agreement, why the vendor wants to backout, had he intimated about this , to you verbally or in writing, consider all the facts to the matter and take a call and if u  really want the property u can enforce the agreement through suit for SPECIFIC PERFORMANCE.,provided it falls within the ambit of limitation.

Jayendra Sevada (Advocate)     21 September 2013

Dear All,


For your knowledge it is stated that an unregistered agreement to sell has no legal value after the supreme court judgment  in surya lamps industries. You may sell this land to someone else. Let the builder file a suit against you then you may take a stand, what at worse all is to be done at that point is to re-pay the amount so received by you Ramya.

T. Kalaiselvan, Advocate (Advocate)     22 September 2013

Ramana Murthy,

The recital of your agreement is very clear that in case of default to perform their part on either side, only the advance amount to be returned  and there is no such thing called the vendor forfeits the advance amount in case of default by purchaser and that the purchaser is entitled to enforce the execution through a court of law except that he entitled to only refund of the advance amount paid in case the vendor fails to execute the sale within the stipulated time, hence it is incorrect to advise for filing a suit for specific performance under the conditions if the recital of the agreement is taken to be true.  - Advocate Kalaiselvan, Vellore, Ph: +919443441062

adv.raghavan (Advocate,9444674980)     22 September 2013

1,the agreement clause says  sale deed has to be done within one month from the date of execution of agreement, only on default of payment by the purchaser, the vendor is liable to refund the said amount,2,cancellation of agreement can be done only by mutual consent of both the parties, 3,default clause comes into effect only after expiry of one month and failure to fulfill the payment terms. SO IF THE PURCHASER IS WILLING TO PAY THE  BALANCE MONEY WITHIN ONE MONTH FROM THE DATE OF EXECUTION OF AGREEMENT AND IF THE SELLER IS NOT WILLING TO GO FOR SALE DEED, THE BUYER HAS ALL THE RIGHT TO GO FOR SUIT FOR SPECIFIC PERFORMANCE.WITHIN THE AMBIT OF LIMITATION.

Ramana Murthy (Engineer)     22 September 2013

Agreement is executed in  August 2013 and the vendor has orally intimated his intention to cancel the agreement within a week of executing the agreement citing some issues from his side. Actual reason seem to  be expectation of higher sale consideration. I had issued a legal notice  to the vendor within the agreement validity time of one month,  informing that I am willing to pay the balance amount and get the sale deed executed . No response from the vendor so far. Agreement time has elapsed now and the vendor has not come forward for collecting balance funds or executing sale deed. What are my options now?

Ramana Murthy (Engineer)     22 September 2013

Also Agreement is unregistered. But it's executed with appropriate stamp value( 0.1% of the agreement  amount).

adv.raghavan (Advocate,9444674980)     22 September 2013

as i said earlier go for SPECIFIC PERFORMANCE SUIT ,based on earlier notice sent to him. he cannot sell that property to anybody else,with out ur knowledge, IF HE DOES then he is inviting trouble.

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