Transactions involving real estate can be complicated, and breaches are always possible. Do you know what happens if buyer breaches the sale agreement? If as a buyer, you breach a sale agreement in India, several consequences and legal remedies are available to the non-breaching party (usually the seller). I have shared the consequences with legal remedies below.
What Happens If the Buyer Breaches the Sale Agreement?
Here are the consequences of breach:
The non-breaching party can start legal proceedings to enforce the contract or seek compensation for any losses suffered because of the breach.
If the buyer breaches the agreement, the seller may forfeit the advance payment or earnest money.
The court may order the buyer to fulfill their obligations as per the contract, especially if the property is unique or of specific importance.
The non-breaching party can seek monetary compensation for losses incurred because of the breach.
The agreement can be rescinded, returning both parties to their pre-contractual positions. The property is returned to the seller, and the buyer gets a refund.
A court may issue an injunction to prevent the buyer from taking actions that further violate the agreement.
This is what happens when buyer breaches the sale agreement.
Let’s also check out the legal remedies:
Suit for Specific Performance: This remedy compels the defaulting party to perform their obligations as per the agreement.
Suit for Damages: The non-breaching party can sue for monetary compensation, including actual losses, interest, and legal costs.
I hope you found this helpful.
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What Happens If Buyer Breaches the Sale Agreement?
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2024-12-27T19:07:58+00:00 2024-12-28T19:08:25+00:00Comment
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