As a professional, I will provide an article on “case laws on agreement to sell.”
Agreement to sell is a crucial element in the sale of goods and properties. It refers to a contract where the seller agrees to transfer the ownership of a property to the buyer. This agreement may be oral or written, and it is enforceable by law.
Case laws on agreement to sell are examples of legal cases that demonstrate how courts interpret and apply this type of agreement. These cases provide guidance on what constitutes a valid agreement to sell, the conditions of transfer of ownership, and what happens when either party breaches the agreement.
One example of a case law on agreement to sell is Fong v. RMI, Inc (1994). In this case, Fong entered into an agreement to sell his commercial property to RMI, Inc. for $4.5 million. The agreement required RMI to make a down payment and then pay the balance in installments. However, RMI failed to make the down payment and defaulted on the agreement.
Fong sued RMI for breach of contract, seeking damages for the unpaid balance. The court held that Fong was entitled to damages, as RMI had breached the agreement. The court ruled that the agreement to sell was a legally binding contract, and RMI was obligated to comply with its terms.
Another case law on agreement to sell is Jai Narain v. Kedar Lal (1984). In this case, Jai Narain entered into an agreement to sell his property to Kedar Lal for Rs. 1,10,000. The agreement stipulated that Kedar Lal was to make a down payment of Rs. 10,000 and then pay the balance in installments.
However, Kedar Lal failed to make the required payments, and Jai Narain rescinded the agreement. Kedar Lal claimed that he had already invested substantial sums of money in the property and should be allowed to complete the purchase.
The court held that Jai Narain was entitled to terminate the agreement since Kedar Lal had breached the terms of the contract. The court ruled that the agreement to sell was a binding contract, and both parties were obligated to fulfill their respective duties.
In conclusion, case laws on agreement to sell provide valuable guidance on the interpretation and application of this type of contract. It is essential to understand the terms of the agreement thoroughly and comply with them to avoid legal disputes. If either party breaches the agreement, there may be legal consequences, and the other party may be entitled to damages or termination of the contract.