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(Guest)

Validity - multiple agreement between same parties

A lengthy post, but wanted to give a clear picture.

Prelogue:

  1. We have a house property in father's name who expired without any will. My mother, myself (Son)  and my 2 sisters are his legal heirs, me and my mother are in possession of the property.
  2. Myself and my mother entered into sale agreement with a buyer sometime in March 2016 (this year).
  3. We asked for reconsideration of the sale amount which buyer agreed and we (myself and mother) entered into another agreement with the same buyer for reconsidered amount on a date (in March) later than the previous agreement.
  4. We have a statement on both agreements that, That, this agreement shall be valid ONLY till 5-June-2016 on or before which the PURCHASER shall pay the VENDORS the sale consideration amount and complete the sale process and get the SCHEDULE PROPERTY registered to his name, failing to which this agreement shall stand cancelled without any further communication.
  5. Also there is another statement, That the VENDORS hereby declare that, they have not entered into any agreement of sale in respect of SCHEDULE PROPERTY with anyone other than the present PURCHASER, earlier to this agreement and this agreement supersedes all earlier understandings, if any, relating to the sale of SCHEDULE PROPERTY and shall be fully binding on the parties hereto.
  6. In VENDORS section of both agreements, both of my sisters name is mentioned but they have NOT signed on either, whereas I have a registered GPA from them. Neither I have signed in the signature columns across their names.
  7. I have received close to 15% of sale consideration amount from buyer.

Now the situation:

  1. Dates mentioned in both the agreements have been crossed.
  2. Buyer is neither making any payments nor giving any assurance of a clear date when the payments would be made.

Queries:

  1. Is it illegal on our part for signing two agreements?
  2. Whether the agreement is valid (since signatures across my sisters columns are empty)?
  3. Which one of the agreement is valid?
  4. How long is the agreement valid?
  5. Can I go ahead with selling the house to another buyer?
  6. Is it legally permitted to deduct any amount from the current buyer's advance for causing me distress?
  7. Will all these have any legal implications on my sisters?

Thanks.



Learning

 11 Replies

adv.bharat @ PUNE (Lawyer)     02 July 2016

No reply to anomous querry.

1 Like

Kumar Doab (FIN)     02 July 2016

@ Querist,

 

The query by anonymous author is discouraged.

 

1 Like

JustAdvisor (IT)     02 July 2016

I can see the querist's name as Kumaar S R.

kavksatyanarayana (subregistrar/supdt.(retired))     02 July 2016

Yes.i have also seen the queriest name as Kumar S.R.  so reply is

that the VENDORS hereby declare that, they have not entered into any agreement of sale in respect of SCHEDULE PROPERTY with anyone other than the present PURCHASER, earlier to this agreement and this agreement supersedes all earlier understandings, if any, relating to the sale of SCHEDULE PROPERTY and shall be fully binding on the parties hereto.  so the 2nd agreement supersedes the 1st agrmt and the 2nd one is valid.  you have mentioned the time in it and after lapse of the time you can.  yours sisters are also legal heirs and they have given POA.  so you have to sign on behalf of them.   approach a well exeperienced lawyer of your area and take his advise and file a case.  

JustAdvisor (IT)     02 July 2016

every contract must be done with free consent of parties. in this case your sisters have given you GPA. you have signed in your personal capacity but not on behalf of your sisters. so consent of your sisters who are necessary parties is lacking. there is no contract in my opinion. as far as his money is concerned, you may have to return it as he has paid it under mistake of fact that there exists a contract. engage an able counsel and show all documents for a considered opinion and decide a way ahead accordingly.

G.L.N. Prasad (Retired employee.)     03 July 2016

As advised, first issue legal notice for specific performance and wait for vendor's view point.

Kumar Doab (FIN)     03 July 2016

The querist changed identitiy from 'Anonymous' from 'Kumaar S R'.

The query has adequately been replied.

 

Suneet Gupta (www.vashiadvocates.com)     03 July 2016

If you had a valid POA from your sisters and the opposite party knew of the same, then it does not matter even if you have signedonly once and your sisters' signatures are missing. The agreement remains valid.

The second agreement (which supercedes the first agreement) shall be valid. The Agreement shall be valid even after the final payment date of 05 Jun 2016, unless you specifically cancel it by sending the opposite party a notice in writing, clearly stating that since they have failed to perform their part of the Agreement, the agreement is deemed to be cancelled. Send a cheque refunding their advance, along with the notice. You can deduct a reasonable amount from the advance for distress, e.g. 1-2% of the total sales amount.


(Guest)

Thank you all for your suggestions:

It would be of great help and homework for me if the below doubts are cleared before I go to a legal counsel:

I have read many posts asking to send notice for Specific Performance, which I assume is like asking him to pay me money and get the property transferred.

Now, if I do NOT want to continue with the agreement and cancel the agreement, can I just send a cancellation letter/notice through a counsel (or myself) with a cheque favoring in his name.

Is performing the above step enough for cancelling the agreement?

Can I go ahead and get into another agreement from another party before/after taking the above step.

Thanks

Suneet Gupta (www.vashiadvocates.com)     08 July 2016

If you send a written notice cancelling the agreement, along with the cheque, and the cheque is enacashed by the opposite party, then the agreement is automatically cancelled.

If you don't hear from the opposite party in a reasonable time (~4-6 weeks) after your notice, then also the agreement can be assumed to be cancelled.

However, if the opposite party contests the cancellation notice legally, then the courts shall have to decide.

Suneet Gupta (www.vashiadvocates.com)     08 July 2016

If you send a written notice cancelling the agreement, along with the cheque, and the cheque is enacashed by the opposite party, then the agreement is automatically cancelled.

 

If you don't hear from the opposite party in a reasonable time (~4-6 weeks) after your notice, then also the agreement can be assumed to be cancelled.

However, if the opposite party contests the cancellation notice legally, then the courts shall have to decide.


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