Dear client , 

It is important to note that the validity and enforceability of a contract or agreement depends on the specific terms and conditions contained within it. In this case, the agreement to sale was between you and the buyer, and you received the advance token money in the form of a demand draft made out in another person's name. You returned the money to the buyer after the sale transaction could not be completed.

It is possible that the buyer could take the position that the money was not paid to the person who made the draft and therefore you have violated the agreement to sale. However, since you returned the money to the buyer and not the person who made the draft, it is unlikely that the buyer will be successful in any attempt to enforce the agreement to sale against you. It is always advisable to have clear terms in the agreement regarding the payment and refund of advance token money.

The person who purchased the draft from the bank does not have any claim to the money, as the demand draft was made out in their name and they received the value of the demand draft when they purchased it from the bank. The transaction was completed between them and the bank, and they do not have any right to claim the money from you.

It is recommended that you consult a lawyer in your jurisdiction to get a legal opinion on the specific facts and circumstances of your case.

Did you obtain an acknowledgement for the receipt of the said refund made to the buyer in this regard, if not, on the safer side, you may obtain one and keep it secured.

If possible you may ask the buyer to endorse in the acknowledgement that he received the amount which was paid by his friend/relative so and so, which was the refund amount towards cancellation of sale agreement.

This would ensure that the other person cannot make any claim in future in this connection.

You were advised to obtain a receipt from the buyer acknowledging the receipt of the refund amount which was paid by his friend or relative in connection with this transaction  with an endorsement that he will give it to the original person.

Further you can even obtain an indemnity bond from the  buyer to indemnify the losses that you may suffer in this regard if there is any litigation or legal dispute in this regard in future.

You will not be liable as you have refunded money to the buyer as per terms of agreement for sale 

2) person who purchased the draft cannot make any claim as money was paid by him on behalf of the buyer 

You are not liable to person who made the demand draft 

Q-1

1. No, except damages or suit for specific performance by the buyer. You have liability towards buyer only and have no liability towards any third person or party with whom there is no privity of contract. 

2. No. Bar by law. 

Q-2

No. 

1. Since, the agreement was between the seller and the buyer , then you both are under obligation to comply the terms mentioned in the agreement. 

- Further, as you have already refund the draft amount to the buyer , then the contact of seller and buyer terminated and you are not liable for any other issues from the buyer .

2. No. 

Hi 

Since you have returned the money to the buyer, there will be no issues. 

In your case, buyer has presented you a Demand Draft purchased in your name through "X" who is a third party to your transaction. 

So, in law, since you returned the money to the buyer, 

a) The contract with buyer will be annulled since you returned back the money to buyer and 

b) X being a third party to the transaction, cannot have any claim whatsoever against you, since he was a third party to your transaction between you and your buyer. 

c) If at all X has any claim, he can have claim against the buyer only.

Hope this information is useful. 

1.  No he can’t take that position as the money was paid by him for said transaction through another person now he can’t raise that issue. It is good that you returned the Money 

Dear client,  

If the agreement clearly states that the money will be returned to the buyer, then you may have an obligation to return the money to the buyer if the sale did not go through. However, if the buyer is not cooperating with you to complete the transaction or has breached any terms of the agreement, you may be entitled to keep the money. It is recommended that you consult with an experienced attorney who can review the terms of the agreement and advise you on the best course of action.

Regarding your question about the person who made the draft, if the person who made the draft has a claim against you for any reason related to the transaction, they may be able to pursue legal action against you. However, it would depend on the specific circumstances of the case and any agreements or contracts that were signed. It is recommended that you consult with an experienced attorney who can review the details of the case and advise you on the potential liability.