Legal Question in Consumer Law in India

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YES.....Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

can b ret.

05.01.2013

Dear Sir / Madam,

A token amount is taken in advance to make it binding on the buyer and the seller to honour their respective commitments on the contract.

If it has been implicitly stated by the seller at the time of accepting the token amount that he / she will forfeit the token in the event the buyer fails to go ahead and complete the contract, it lies at the sole discretion of the seller whether he / she desires to refund full or part of the token amount to the buyer.

If the buyer on his part has made a commitment in the form of an MOU or Agreement for Sale with the seller, he / she cannot cancel the contract. It is then at the discretion of the buyer whether he / she still insists on compliance and fulfillment of the contract by the seller. If the buyer does not insist on full compliance of the contract by the seller, the token amount accepted by the seller is fully refundable to the buyer.

Regards,

FCA Prashant Chavan

Mumbai

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