Legal Question in Consumer Law in India

A buyer pays 2 lakh as token payment on a 100 rupee stamp paper, undertaking and assuring that the total balance will be paid by a fixed date, and if that undertaking/assurance is not complied with , in any circumstances or for any reasons, the buyer agrees that the token payment would be forfeited. He fails, but threatens the seller with threats of life, for which a police complaint is also registered. Purchaser sends a lawyer`s notice threatening that he would ask a court of law for attachment of the property if token money plus other expenses are not returned forthwith. The property is subsequently sold at a lower price thereby losing over one lakh rupees. Kindly advise defence/counter measures. Thanks


Asked on 6/29/12, 11:04 pm

2 Answers from Attorneys
Vivek Mapara Vivek N. Mapara

if the amount of Rs. 2 Lack is paid as part of earnest money, then upon cancellation of the contract they same has to be returned. But if amount is paid as security for complying with terms of agreement or fulfilling obligations under the agreement, then the same can be forfeited. It depends upon the language used in the agreement.

They cannot attach the property they way it is mentioned. its only a legal threat.

Vivek N Mapara

Attorney

www.vnmlaws.com

Read more
Answered on 6/30/12, 10:44 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

As per facts mentioned they can't attach property.

Read more
Answered on 7/06/12, 4:47 am


Related Questions & Answers

More Consumer Law questions and answers in India