Saturday 18 October 2014

PART PERFORMANCE OF CONTRACT

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

Sale of immovable property is an act of contract between the parties, whereby every party to the contract has definite duties to be performed, such as, the seller needs to establish the clear and marketable title to the property and at the time of registration, needs to relinquishment the title deeds together with vacant possession of the property. On the opposite hand, the vendee needs to pay the sale thought as in agreement and co-operate in finishing the registration formalities.

It is important for the vendor and also the client to enter into associate Agreement to sell before execution the Sale Deed. The explanation is that such agreement can bind each the parties to the agreement and create it obligatory to perform their duties as envisaged within the agreement. 

The seller and also the client are on the negative position if the agreement isn't executed as a result of the vendee might not co-operate in paying thought as in agreement by each of them and on the opposite hand, the vendor could avoid or delay from continuing to convey the property at the time of registration, resulting in misunderstanding and disputes between the parties. therefore it's advisable  to execute agreement to sell before execution the sale deed. 

Generally, vacant possession of the property is two-handed over to the vendee at the time of registration, however in bound cases, the seller can relinquishment vacant possession of the property to the vendee before the registration of the sale deed. This act of the halfies to the contract is named part performance. 

Rights of the Purchaser: Section 53-A of Transfer of Property Act acknowledges half performance. The vendee, who gets possession of the property beneath terms of contracts, unfinished registration of sale deed, gets just rights. 

The seller cannot enforce eviction against the vendee once he has compound with possession of the property as per the in agreement terms of contract. The vendee will fancy peaceful possession of the property even before the sale deed is dead and registered. Section 29 of Registration Act additionally acknowledges the half performance. 

Mandatory Conditions: Section 53-A of Transfer of property Act stipulates bound necessary conditions to determine half performance of the contract, as mentioned below:
1. The dealing should be a contract for transfer of immovable property for thought.
2. The contract should be III writing.
3. It should are signed by the vendor or his approved agent.
4. The terms of contract ought to be clear, unambiguous and bound, whereby the act of half performance ought to even be a part of the contract. 
5. The vendor, in pursuance of the contract ought to place the vendee in vacant possession of the property. The vendee ought to take the possession and if already in possession shall still be in possession.
6. The vendee should have created half payment of the sale thought and will be willing to perform his a part of terms and conditions specified.

The just right conferred on the vendee may be implemented by the vendee against the vendor or anybody claiming beneath him. It cannot be implemented against halfy WHO has purchased the property for thought while not the information of contract of part performance. As regards the correct of the vendor thinks about, the sole remedy accessible for the vendor is to initiate case against the vendee, seeking recovery of the balance of sale thought. 

Non-applicability:The relevancy of half performance has 2 necessary ingredients, firstly, the existence of written contract and second payment of thought. The transfer ought to involve the component of thought to be paid by the transferee. 

Gifts:The thought of half Performance isn't applicable within the case of gifts since the essence of the gift is transfer of property without thought and existence of consideration is necessary.

Co-Owners: The school of thought of half Performance won't be accessible against alternative Co-Owners who are neither the signatories nor have signed such an agreement as willing witnesses. Thus, even the agreement is valid to the extent of the seller's share, an equivalent cannot be implemented against the alternative co-owners since there's not privity of contract between the vendee and also the other Co-owners. 

Minors: The tho't of half Performance can not be invoked just in case of property involving minor's share and though the Guardian of the minor enters into the contract on behalf of the minor, an equivalent isn't valid since minor isn't competent to enter into contract and social control of the contract by the minor isn't valid. 

Thus, it's going to be aforementioned that the school of thought of half Performance, as envisaged beneath the TP Act, confers solely associate just right over the vendee so as to defend his possession, however cannot be implemented against those to whom the property is sent wrongfully and as required beneath law. Thus, half performance is merely a weapon to defend possession having nonheritable beneath a wrongfully valid agreement and it doesn't validate the agreement or contract that is, prima-facie, illegal. 


At the time of getting in the agreement, each the vendor and also the vendee ought to incorporate a clause which might clearly depict the thought of half performance, by virtue of that the vendee are two-handed over possession of the property. 

However,if possession of an equivalent is in agreement to be compound by the vendor to the vendee, then the stamp tax can have to be compelled to be paid on such agreement, which is able to be reminiscent of the stamp tax needed to be paid on conveyance deed or sale deed.


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Advocate Selvakumar

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