Legal Notice for Cancellation of Sale Agreement

What is Legal Notice for Cancellation of Sale Agreement?

A Sale agreement is an agreement between two parties laying down the terms and conditions and rights and obligations between the parties i.e. the seller of the property and the buyer of the property. It is drafted in order to avoid future legal troubles.

Legal notice for cancellation of sale agreement is a formal intimation to another person, informing them of the intention to cancel the sale agreement. If one wants to cancel a sale agreement, a formal/legal way of doing so is the best option. One can send legal notice to the other party stating your intention to cancel the sale agreement.

Why is Legal Notice for Cancellation of Sale Agreement required?

Cancellation of an agreement may be required in various scenarios. Both buyer and seller have the right to cancel the agreement. However, there must be a valid reason for cancelling the sale agreement. A few scenarios where a buyer may need to cancel a sale agreement have been given below:

• The project is delayed inordinately.
• When the buyer is not in a position to honour the contract due to an emergency like death, etc
• In case there is a delay from the seller's end, then the buyer can be compensated according to the terms of the contract, including penalty interest to a notional rent, etc.

If the case is that the terms of the contract are not honoured by either of the parties, the aggrieved party has the right to legal recourse.

What should a Legal Notice for Cancellation of Sale Agreement cover?

The legal notice for cancellation of sale agreement must contain the following:

• The legal notice must be drafted in the letterhead of an advocate which is to be specific and proper.
• It should contain addresses and contact details of the advocate.
• The date on which the legal notice is issued including the name, address, and contact details of the person to whom the legal notice is issued is to be stated.
• Since the legal notice for cancellation of agreement is going from the client’s end, the name and details of the client should be mentioned.
• Detailed description of property in dispute.
• It should be made clear in the notice as to how your right has been infringed due to the act or omission by the opposite party and for that what you want from him. A specific direction must be given to the opposite party along with a time limit.
• The notice must be signed (with date) by the advocate and the sender.

Format for Legal Notice for Cancellation of Sale Agreement

Ref. No……………. Dated ____, __________

SUB.: LEGAL NOTICE

Pursuant to the instructions from and on behalf of my client ___________________, resident of _________________ I do hereby serve you with the following Legal Notice: –

1. 
   That the sale agreement dated ……………………. made between my client of the ONE PART and you on the OTHER PART in respect of premises No. ………………………………….. (hereinafter referred to as demised premises).
   
   
2. 
   That according to the sale agreement dated______, the possession of the property was to be given to my client in November 2019 and now it is February 2020 and he is yet to receive possession of the said premises.
   
   
3. 
   My client has been promised time and again for the possession of property by stating that only 7 more days would be required by you each time you were questioned. However, now, it has been more than 3 months since the possession was due and my client has been waiting with packed bags after completing payment in full.
   
   
4. 
   My client and his family have suffered immensely due to the delay caused by you and now the sale agreement has expired by efflux of time on the ………….. day of ……………, 202_.
   
   

I hereby call upon you to refund the entire amount of 1 Cr that has been given by my client to you, in addition to payment of damages of Rs. 5 Lacs for mental agony and Rs. 1 Lac for attorney fee on or before the ………………….. day of …………………., 202_, failing which my client will file a suit against you for damages and cheating, which may be sustained by him by reason of your willfully not delivering possession even after full payment thereof and for breach by you of the covenants contained in the sale agreement.

A copy of this Notice is kept in my office for record and further necessary action and you are also advised to keep the copy safe as you would be asked to produce in the court.

Documents Required for Legal Notice for Cancellation of Sale Agreement

The following documents must be scrutinized while drafting a legal notice for cancellation of sale agreement:

• Identity proof of sender
• Certified copies of all title deeds of property,
• Valuation of property,
• Documents proving ownership of immovable property,
• Sale Agreement

Procedure for Legal Notice for Cancellation of Sale Agreement

No set procedure is applicable in the making of a legal notice for cancellation of sale agreement.. However, a legal notice must be drafted and signed by a lawyer, with all the necessary details/contents as mentioned above. Once the notice is drafted it should be examined by the sender. It should then be sent to the other parties. If no action is taken or no reply is received within the number of days mentioned upon the notice, suit against the defendant can be filed in the court of proper jurisdiction if the circumstances allow.

Legal Considerations for Legal Notice for Cancellation of Sale Agreement

A valid contract / agreement is governed by Section 10 of the Indian Contracts Act. A Sale Agreement is different from a Sale Deed. A Sale agreement is the first document which lays down the intention of the seller to sell and the buyer to buy. It consists of deliverables, advance payments, timelines and the scenario upon which the sale will be complete in the future. More often than not, Sale Agreements include a clause to cancel the agreement in case of its breach or other reasons. However, if the same is missing, you can send a notice to the buyer/seller and either refund any amount or seek refund of amount if any, as the case may be. Damages can also be sought from the other party in the legal notice.

How can a lawyer help to draft Legal Notice for Cancellation of Sale Agreement?

Since, a legal notice is the first step towards recovery litigation, it is highly recommended that you hire a documentation lawyer. A lawyer has the requisite expertise and knowledge to draft such legal notices. He/she will be able to accumulate important information for the client and draft the notice accordingly. He/she will ensure that you are on the right path in attaining justice. A lawyer can manage all legal paperwork effectively. Therefore, hiring an expert civil lawyer is of prime importance in order to ensure that your legal notice for cancellation of sale agreement is sent correctly, keeping in mind the possible litigation that may ensue.