Monday, April 22, 2013
SC: "Letter of Intent is not an agreement to sell, hence the same cannot be specifically enforced in laws"
Pronouncing a common judgment in the matters of CIVIL APPEAL NO. 4509 OF 2007 along with other two similar nature civil appeals for the relief of specific performance of a contract in respect of selling flats in the city of Mumbai, the Division Bench of the Hon'ble Supreme Court of India, recently dismissed all the three appeals with an important caution against the prevalent treads of properties transactions by way of executing Letters of Intent for sale and purchase of real estates like flats and bungalows, more particularly in metropolitan areas, as such that " The letter of intent cannot be said to be an agreement to sell for the simple reason that according to the contents of the letter of intent, only upon payment of the entire purchase price, the Developer and the plaintiffs (proposed purchasers) were to enter into an agreement with regard to sale of the flats. This fact clearly denotes that no agreement to sell had been entered into between the plaintiffs and the Developer and in absence of such agreements, in our opinion, there cannot be any right in favor of the plaintiffs with regard to specific performance of any contract. Thus, in our opinion, the High Court did not commit any error while coming to the conclusion that there was no binding contract or agreement in existence between the plaintiffs and the Developer and therefore, the trial court could not have decreed the suit for specific performance. Looking to the rising price and inflationary trend in the country, a direction to the Developer to return the amount of the purchase price received from the plaintiffs was only modified in fine from 9% p.a. to 12% p.a by the Hon'ble Apex Court in favor of the said plaintiffs.
Popular Posts on our Law Office Blogs
" If the land owners are not paid and compensated within two years after the declaration of the acquisition of the proposed land, the w...
While adjudicating **Pinakin Rawal v/s State of Gujarat CR.APPEAL NO.811/2004]****the Hon'ble Supreme Court has observed in its landmark...
Powered by www.kartikey.com ::::: A Law Office of India, pioneering the online concept of free legal aid and laws consultation through E-L...
Before passing Order of detention under PASA act, the detaining authority must come to a definite finding that there is threat to the “public order”While applying the ratio, laid down by the Hon. Supreme Court, in the case of Ashokbhai Jivraj @ Jivabhai Solanki v. Police Commissioner, Su...
Vidhya Sahayak for teachers, Lok Rakshak for police and Gram Mitra in rural administration are "Gujarat State Sponsored Financial Exploitation"A division bench of the Gujarat High Court, comprising Acting Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala, has observed las...
On the eve of Dipavali...it is a rising of a new dawn...with a hope of a happy and prosperous New year, We extend our cordial wishes to all ...
Would it not be a discrimination by conferring different forums in different states for trials of certain same Offences under IPC ??Why does there exist typical difference in respect of forum for trial of certain offences like those under sections 326, 409, 466, 467, 468,...
Recently, the Supreme Court of India has pronounced a landmark judgment, while adjudicating and dismissing writ petition lodged by Bar Coun...
While exercising Criminal Appellant Jurisdiction in the matters of CRIMINAL APPEAL NO.305 OF 2013,moved by appellants Mr. Surender Kaushik a...
Recently yesterday, the Hon'ble Apex Court of India has reconfirmed the Rules and Laws about the Admissions of a party while adjudicatin...
Law Blog Archive
- October (1)
- September (6)
- August (7)
- July (8)
- June (4)
- May (7)
- April (8)
- March (9)
- February (9)
- January (6)
- December (9)
- November (4)
- October (3)
- September (5)
- August (11)
- July (2)
- June (1)
- February (2)