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shahnawaz khan   11 September 2021

Token advance from 2 people

Hello, I have a query Pls assist.

I have taken token advance from 1st party to sell a flat. However, due to some issues with this party have to initiate to deal with another person. Hence, token advance received from 2nd party too. In the first party deal, had a note on just a white paper saying we shall cancel the deal if there are any issues. With this clause we have taken token advance with another person. May I know if there is any legal issues on my side with the first party. Both the party deal writings is just on a white paper only.


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 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     11 September 2021

white paper dealings not valid under law. Registering a sale agreement is a wise move as it is also backed by various acts such as the Indian Contract Act, Specific Relief Act and various apartment acts enforced by many states. ... Several Supreme Court and high court judgments have held that unregistered agreement of sale will not be recognised in a court of law.

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