I take 50k token check of my shop from buyer and write on plain paper "i make deal shop in xxxx amount but legal agreement is pending" and signed it the photocopy of check it also on that paper. I deposit the check to my account and after some days, now i want to cancel the deal because i get high offer for my shop from another buyer.
Anyone tell me what is the legal way to resolve this matter and what legals rights buyer have which he use against me.
I mean if i offer to buyer i return token amount in double 100k. And buyer is not agree to take that ask me complete the deal then what he can do legally against me? And what i have to do?
By the way agreement is not done and i also give cross signed photo copies of my property to buyer.
Waiting for your answers.
Any help will be appreciated.
Thanks
Usman
There are two aspects of the deal.
1-moral
2-legal
Morally you should re-think regarding you decision of canceling the deal. If the newer offer is really tempting and has substantial difference from previous ones then you can request and convey your situation to that party.
Legally i do not think so he can do anything.Yes in that case you have to return 100k as a token.Also if the token was conditional then you can cancel the deal without any hesitation. Because what we call as confirm biyana in dha should be surely between 5 to 10 lacs..Here 50k is considered as conditional token.
I just cash his token check to my account and also i write plain paper with check photocopy "deal is done in xxx amount and agreement is pending" and signed below. I also gave him property documents in cross signed form.
Now he is refuse to taking token amount even i offer him i am willing to pay you double amount of token.
and now buyer is threatening me with property agent. I will go for legal action.
Even there is no legal agreement is done between us. The 10% agreement is pending.
I didn't write on paper that i will refund double of token amount, it was not conditional token. Even i offer him i will return double token in courtesy.
so what so now ? is he can do any legal action against me , because he threatening me with estate agent.
Waiting for your answers.
Any help will be appreciated.
Thanks
Usman
I don’t think so he can do anything but try out of court settlement because you know the condition of judicial matters in our country.He cannot threaten and market rule is that if seller breaks the deal he will have to pay double the token…Simple!! He cannot snatch is away.Also legally he cannot do anything what i think…He cannot force you to sell your property.Also this plain paper agreement is of no value.You changed your mind,you are ready o pay the penalty,matter resolved!!He cannot coerce you.Involve some reasonably influential in the deal from your side and try to solve the matter.
You gave him original documents or photocopied form??
Photocopies with Cross lines every page and write in big letters --> for Verification only.
Also i am willing to offer him double amount of token even on UN-conditional token, what else better i can do ?
Sir firm up your stance. Involve some reasonably influential person in the deal. Dont get carried away by his threatening gestures. Btw can i know in which area your property is??
Cancellation of deal is a normal matter in Pakistani market. Offer the dealer his commission on the condition if he can get the matter settled in your favor.
Usman sb, Saadi has very correctly explained. If you are offering double the token, then there is nothing wrong on ur part... As far as legal action is concerned, this plain paper has no legal value...
However, it is better to resolve this matter. Saadi has given u very good advice... Offer commission to the dealer and u wil c the difference.
Regards
Why i give commission to agent even deal not done? it is 2 percent commission and property value is 1 crore. So it means i have to give 2% commission (almost 2 lac's) to property agent for just settlement ?
huh? i give double token and + 2% commission for just settlement ? so it cost me 2.5 lac ?
is just double token is not enough for settlement?
Sir jee, agent ki commission nhe, but it would be like RISHWAT.... Ultimately, I have to say it like this.... The amount will not be 2%, but anything which can get u out of this mess....
regards
Oh paji keun tension la raha hooo, ,you havent even signed any formal legal agreement,just give a damn to his threats,just tell him in plain words jo putna ha put laa
Well said Adnan sb… But the party looks influential as per the panic of Usman sb…
Adnan sb is right…khan bhai’s observation is spot on…koi chaalu kisam ki party hogi…usman sir itna matt darain…agar zada threat kare to usko biyana bhi naa dain…usko kahen biyana lena hai to le warna kalti ho…Just saying it for safety purpose kay us se jo bhi conversation ho cell pe usay record kar kay rakhain…
Mr. Usman, you shouldn't cancel the deal because you are getting higher offer, what about the commitment you gave to buyer willingly and under no pressure...money's lust is getting higher these days
To your question pls note that I have personally seen properties getting stayed by court based on just a piece of signed paper, you might win the case after years of battle, but your property will become zero till the court decides...
An agreement in such cases is much better as it usually has a standard clause, unless omitted intentionally, which says that in case of failure to transfer the property before the said date, buyer gets double biana or forfeits...in this case you pay the buyer 1 lac and deal is off. This is a simple clause which gets overlooked often but I think its very powerful..
Try to get it settled buy offering him more than double biana or risk getting stuck in court battle...
I am sorry to say this but he does seem to have a good case against you
Well in case of Cancellation of Deal of the Shop there are two situations:
Give him double the amount of Token and sign a Cancellation Agreement.
The Purchaser has the right to get the transfer through Court of Law, he can go to court and get a stay order on your property then you will not be able to sell it.
In my opinion you can settle the matter out of court even if you have to pay 200k instead of 100k.
Regards,
Ishtiyaque Aziz
YC and Ibbi, sorry to say, jab oss ne koi agreement he nhe kiya, to stay kaisa?
Regards
The buyer can file a case in the civil court seeking a judgment to force the seller to execute a sale agreement. The buyer will argue that token money should be considered as an 'agreement to sell'.
The seller's lawyer will argue that as per trade practice token money is inferior than bayana. And that the understanding as well as the remedy in practice is to return double the amount if the seller backs out, or for the money to be confiscated if the buyer backs out.
In this case, my opinion is that Mr M Usman is in a stronger position from a strictly legal perspective. But the problem is that a case can be filed and it can be sustained for a number of hearings. If the buyer files a case here, Mr Usman's lawyer should file an interim application for summary dismissal of the case under Order 7 Rule 11 of the Civil Procedures Code and try to get the case dismissed quickly. The argument in the application will be that the buyer/plaintiff has failed to state a valid cause of action. In plain words, he has no right of which he can seek enforcement.
But if the other side's lawyer is strong, he will contest the application under 7/11 and if the application is accpeted, he may file an appeal.
Under these circumstances, my advice to Mr Usman is to put up a strong face and show your willingness to fight this legally. Hopefully, the buyer will back down.
Paki-1 sb, what would be the expected result as per your above opinion?
Khan sahab I just edited my response to make it more elaborate. I have also given him the strategy. Depending on how the situation goes, I am willing to give him further advice in light of latest developments.