Legal Question in Banking Law in India
negotiable instruments act 1881
whether u/s 138 of the negotiable instrument act the words debts or other liability includes cheque given as a earnest money towards an agreement to sale??
4 Answers from Attorneys
Re: negotiable instruments act 1881
Yes, earnest money may be a sufficient 'consideration' for the vendor not to sell his goods to someone else.
Re: negotiable instruments act 1881
If a cheque has been given in lieu of earnest money, and if the drawer fails to perform his part of the agreement to sell, the vendor or payee can certainly proceed under Sec.138 of the N.I. Act. It is encompassed in 'other liability'
Re: negotiable instruments act 1881
If a cheque has been given in lieu of earnest money, and if the drawer fails to perform his part of the agreement to sell, the vendor or payee can certainly proceed under Sec.138 of the N.I. Act. It is encompassed in 'other liability'
Re: negotiable instruments act 1881
Yes, provided it is under a contract.
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