Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Venugopal (Sr.Exe)     20 November 2010

Time Limit for Execution of Agreement of Sale/Purchase

I have found my esteemed lawyers friends don't answer questions about the same issue other than replying to what was written in the first attempt wherein some important points may have been missed out. Incase these are pointed out in the same thread, later on, and asked their opinion none replies. Hence this new thread.

In case of 'Agreement of Sale/Purchase' wherein our esteemed lawyer friends have informed that the buyer can effect the transaction within a period of 3 years even if the in the 'Agreement of Sale/Purchase' the time limit mentioned is just 3 or 4 months for the transaction to be completed then what about the sale price if the sale is executed at the fag end of the 3rd year? The price at the time of signing the 'Agreement of Sale/Purchase' would be much lower and in 3 years the price could have shot up manifold. So won't the seller be a loser if the buyer takes his own cool time to execute the deed?



 21 Replies

adv. rajeev ( rajoo ) (practicing advocate)     20 November 2010

Indian limitatin act has to be followed.

Venugopal (Sr.Exe)     20 November 2010

You have not fully answered the  question.

A V Vishal (Advocate)     20 November 2010

Mr Venugopal

In case there is a time limit fixed say 3-4 months as asked in your query, then the agreement becomes null & void after that period and the vendor doesnot stand to lose, however if any period is not specified in the agreement then the provisions under the limitation act will come into force. Further either the vendor or vendee has option of filing a suit for specific performance if either of the party do not honour the agreement.

1 Like

Vishnu Promod Srivastava (TAX CONSULTANT)     20 November 2010

I endorce the opion of Mr. A.V. Vishal Advocate.

Vishnu P. Srivastava

Suchitra. S (Advocate)     21 November 2010

I agree with Vishal ji.

manish kumar (Lawyer)     21 November 2010

If the agreement mentions time limit, say, the buyer has to pay the remainder price within stipulated time, the buyer has to pay the remainder and conclude the contract. If the buyer does not pay the amount within specified period , the seller has option to rescind the agreement by giving one month's notice. If however buyer does not pay within stipulated period and the seller does not take any action, it means he has acquisced in this and has to settle for the price while entering in to agreement. Law does not help laggards!

1 Like

SACHIN AGARWAL (ADVOCATE)     21 November 2010

In case there is the time limit of 3-4 months in the agreement but the sale is not executed within time settled, the vendor may terminate the agreement by serving  a Notice upon the purchaser and may forfeit the money paid by the purchaser in advance.

 

The purchaser has an option to file a suit for specific performance of contract and in that suit the purchaser is required to prove that he was ready to pay the balance sale consideration and to get the same deed executed but the vendor did not do so.

 

If the purchaser succeeds in proving this, he would succeed in the suit otherwise the suit would fail.


Whereas the question of limitation is concerned, the Limitation Act provides that the purchaser has a right to file the said suit for specific performance of contract within a period of three years from the date of arising cause of action.

1 Like

Venugopal (Sr.Exe)     21 November 2010

Thank you very much for your opinion Mr.Vishal,Sir. Though I mentioned about the time limit and the non-performance  by the buyer in another thread some of your colleagues here just stated that the buyer had the right /option to enforce the Sale within 3 years. It did  not make sense,either common or legal, to me and hence this new thread. Thanks once again for replying my query, Sir.


(Guest)

The limitation is three years from the arising of cause of action. The internal time for performance of contract is fixed in the agreement 3 or 4 months.  But the sec 16 (c) of Specific relief act which play the important role in executing of specific performance of contract. If the purchaser is ready and willing to perform only entitled  to get the agreement executed.  otherwise he cannot enforce to execute the sale deed

pawan kumar (-)     05 June 2011

vishal ji,pl.tell after serving noticeto cancel agreement and forefeit advance money seller can sell property to another person.

pawan kumar (-)     05 June 2011

can vendor enter into agreement to sell with other person after  rescinding the agreement with first vendee and forefeiting his advance amount by serving notce and to which no reply has come pl .guide it is very important.

SACHIN AGARWAL (ADVOCATE)     05 June 2011

Mr. Pawan,

The vendor has an option to forfeit the advance amount if the vendor remained ready and willing to execute the sale deed during the continuance of the agreement to sell and the purchaser did not pay the balance sale consideration and also did not get the sale deed executed in his favour. After forfeiting the amount, the vendor may sell the said proeprty but in that case the purchaser has a right to claim for specific performance of contract by filing a suit within a period of three years from the date of arising cause of action.

Venugopal (Sr.Exe)     06 June 2011

Mr. Agarwal,Sir, in that case the defaulting and scheming first vendee can keep on postponing the sale of the property by the Vendor to any other person for the next 3 years just by applying his "right to claim for specific performance of contract by filing a suit within a period of three years from the date of arising cause of action" and yet not carrying out the sale for the 3 year period. So in reality does it mean if these irresponsible people(1st Vedee) want they can virtually obstruct any sale being done by the Vendor for the next 3 years even though they themselves do not have the intention of carrying out the purchase ?

pawan kumar (-)     06 June 2011

sh.venugopal has rightly replied which show that law is in favour of defaulting vendee.it means it is not safe to sell within 3yrs from date cause of action arises. IN MY CASE PL GUIDE FROM WHICH DATE CAUSE OF ACTION ARISES.DATE OF AGREEMENT 05-11-2008 WHEN ADVANCEAMT.WAS RECEIVED.LAST DATE OF REGISTRY WAS 31-03-2009 REGISTRY NOT EXECUTED INSTEAD PAID SOMEADDITIONAL AMT ON 04-04-2009 AND TOOK REGISTRY TIME EXTENDED TO 30-04-2009. AGAIN REGISTRY NOT DONE TILLDATE


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading
Start a New Discussion Unreplied Threads

LCI Learning Hindu Laws


Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query