Legal Question in Intellectual Property in India

We have an under-construction property for which I brokered a deal.

After mutual consensus, the potential buyer provided me a token money of 25k- Cash and 25k- Cheque.

We signed a (on revenue stamp)receipt of the transaction which stated that in case of back-off i would

be liable tom pay "double" the token money.

However, after 2 days of introspection, I realized that I should hold on to the property.

I have not yet deposited the cheque or used the token money.

I am willing to return double i.e. 50k, of the token money.

Will iI be liable for any legal implications?

Does it mean a Breach of contract?

Please advise.


Asked on 7/24/13, 8:26 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

24.07.2013

Dear Sir / Madam,

Since your agreed transaction with the purchase consideration along with token of Rs. 50,000/- mentioned on Stamp Paper stipulates that you will have to pay double the token money received, you are liable to repay Rs. 1 lakh and not Rs. 50,000/- to the potential buyer. Your backing out does tantamount to breach of contract and if you have not encashed the cheque of Rs. 25,000/-, you should immediately return the un-encashed cheque back to the potential buyer, along with your cheque for Rs. 50,000/- plus the cash amount of Rs. 25,000/- taken by you from the potential buyer, in order to eliminate you from any legal implications in future.

Regards,

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Answered on 7/24/13, 8:58 am


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