JAGADEESH GOVIND (ADVOCATE) 28 March 2009

Termination of an agreement

Sir,

Mr.A has entered an agreement with Mr. B ,for the sale of immovable property and paid Rs.2 lakhs as advance.Subsequently Mr.A intimated Mr.B that he want to cancel the agreement and Mr.B returned the advance amount through Cheque.

My question is whether the agreement become cancelled,by returning the amount or is it necessary to enter a Agreement for rescinding the Contract.

JAGADEESH

Reply Follow

9 Replies

JAYANTA BANERJEE (ADVOCATE ) 28 March 2009

IT IS NECESSARY TO ENTER AN AGREEMENT FOR FOR RESCINDING THE CONTRACT. AS THE AGREEMENT IS IN WRITTEN FORM SO TO ENABLE A AGREEMENT TO RESCIND IT SHOULD BE IN WRITTEN FORM

M. PIRAVI PERUMAL (Advocate & Consumer Rights) 28 March 2009

I agree with Mr. Jayantha. The unilateral cancellation can be challenged by the other person.

Y V Vishweshwar Rao (Advocate ) 28 March 2009

I agree with my lrd feiends and further add ;- A and B should execute another agreement cancelling the prevoius sale Agreement of Sale, other wise there will be claims from B for damages etc

adv. rajeev ( rajoo ) (practicing advocate) 28 March 2009

i agree with piravi

n.k.sarin (advocate) 28 March 2009

Mr. Banerjee is right.

JAGADEESH GOVIND (ADVOCATE) 30 March 2009

Sir,

Thank you to all for the valuable information.

jagadeesh

Ashey 01 April 2009

i agree with piravi

M. Sahul Hameed (Advocate Profession) 06 April 2009

The form of agreement must be considered, if the agreement is registed the recind agreement is also to be registered if the prior is written and unregister, the latter also to be written and unregistered, if the prior is oral then simple returning of money and reciving by the other part is enough.

adv. rajeev ( rajoo ) (practicing advocate) 07 April 2009

From ur que it seems that there was an written agreement. If it is regd., then it will have to be cancelled by regd., agreement cancel deed, otherwise it may cause some problms. If it is not regd., B will have to take back the written agreement. Or B will have to take agreement cancelleation letter from A to sruvive.