1. In absence of any specfic clasue no amount of advance cna be forfeitted on cancellation of agreement.

2.Forfeiture of earnest money is allowed only on certain stringent condition and mere cancellation of agreement is not a valid reason for this.

3. In your case the absence of any clause on forfeiture of earnest money makes your case more difficult.

4. If you do not wish to proceed with him , cancel the agreement , send the money with a notice of cancellation and then enter into any agreement with another person.

There is no forfeiture clause in the contract

You have to refund advance money received in case purchaser fails to make balance payment within period stipulated in the contract abd the agreement is cancelled

You can file suit for specific performance to direct purchaser to make balance payment

Sir, the buyer had defaulted on his part to perform the contents of agreement.,therefore the amount stands forfeited .. You can send him a legal notice , stating a 15 days time notice to come to tehsildar office on a specific date , and incase of failure your amount shall stand forfeited .. On that , perticular date visit the the tehsildar office , and mark your presence their , and if fails to apper the amount will stand forfeited

1. The agreement is clumsily drafted if it does not contain the forfeiture class. It seems that you did not get it drafted by a lawyer.

2. You have no right to retain the advance as this is not a statutory right. You are bound to refund on demand by the buyer.

1. Is there any clause in the said agreement mentioning that the agreement will be treated as cancelled unless the balance payment is made and the sale deed is registered for the said land within a specific period?

2. If no, then legally, you can neither forfeit the advance collected by you nor can cancel the said agreement without giving him any notice.

3. You should now send him a letter informing him that the said agreement will be treated as cancelled if the balance payment is not made within next 1 month and the sale deed is registered.

4. After the specific period of 1 month, send him another letter cancelling the said agreement and returning his advance amount.

5. If you do not manage to return his advance amount, he can easily get a stay from the Court restraining you in selling the said land to any other person and claim to register it at a later date as per his sweet will.

6. So, some how or other manage to deposit/remit the said advance amount to his bank account and then send him the letter cancelling the sale agreement.

7. This type of payment of advance without mentioning the forfeiture clause is a trap for unduly harassing the seller and keeping the agreement open for a long period of time.

It can sent by you or through your lawyer.there is no creteria in alw for this.

If you cancel then cancel it wholly.Any increase of price would entail further dispute which can certainly be avoided by simple act of cancellation.

you can send letter on your own cancelling agreement as buyer failed to make payment within period of 3 months stipulated in contract

forward cheque for the advance amount . send it by speed post AD

Send a legal notice through lawyer.. You don't have to return the amount , as it stands forfited

1. You can also draft the said letter if you are so capable though legal drafting should be left to lawyers.

2.If you increase the price mentioned in the said agreement, then it will amount to accepting the agreement and trying to increase the price. It will be a wrong practice. Cancel the agreement for non performance of specific act by the potential purchaser and redraft the said agreement afresh removing all the faults therein.

3. For cancelling the agreement, send the letter of cancellation and the advance amount first as suggested in my earlier post.

You canot retain the amount of forfeit the same just because he failed to perform his part of contract within the stipulated time

Under this situation you may issue a legal notice to the party mentioning that since he did not turn up of registration of sale deed in his favor after paying the balance of sale consideration, the sale agreement stands canceled since it was not enforced within stipulated time and you may advise him to take back his advance amount.

Should this letter be in the form of a legal notice drafted by lawyer or can be a simple letter signed by my self? Can I increase the price since the agreement time is already lapsed? Or if I just return the advance amount and sending a letter to the buyer saying that agreement is cancelled, is that OK?

You can send a letter from your side or can send a legal notice intimating the cancellation of the sale agreement and can even send the money either by cheque or DD by a registered post or through bank transfer

In absence of any clause with regards to forfeiture, you are bound to return back the money. It is advised that you cancel the agreement, return the money and enter into an agreement with a new person.

You can file a suit of specific performance to direct purchaser to make the balance payment.

Regards