How To Protect NRI Rights If The Sale Agreement Is Dishonoured
Once the terms and conditions of an agreement are finalized and both the parties agree on the terms, there can still be a breach of the agreement. This is possible when either the seller or buyer of the property denies to fulfill his part of the agreement. In the case of NRIs, the chances of violations increase due to lack of knowledge. Thus, NRIs need to be aware of their rights as a party to the agreement.
As per the Indian laws, there are various remedies available under different legislations. These remedies offer a broader choice to the aggrieved parties to seek justice. For the applicability of such laws, NRIs can seek assistance from our property lawyers.
What Is A Breach Of Contract?
A contract is said to be breached when one of the parties has made some alteration in the specification to any clause or to the contract which has changed the soul of the agreement. If a party has not complied or/and not fulfilled their part of the obligation to the agreement, then also the contract is considered to be breached.
Remedies Available To NRIs As Per The Law
- Indian Contract Act, 1872Under section 65 of the Indian Contract Act, it is explained that “party that rescinds the contract must restore any benefit he got from the agreement”. The aggrieved parties can also seek compensation under section 75 for such a recession. If it is deemed necessary, an injunction can also be filed to prevent anyone from performing any activity related to the agreement in order to prevent further misuse.In some cases, the court orders specific performance of the act, which means that parties would have to carry out duties as per the contract’s original terms.
- Real Estate Regulation and Development Act (RERA), 2016RERA Act empowers NRIs if the sale agreement has been dishonoured. In case, the developer/ builder has not fulfilled his part of the agreement or has delayed his duties (such as delayed possession), then the aggrieved consumer can appeal to the appellate authority mentioned under this act. Section 18 of the Act also lays down provisions regarding the refund of the money spent, along with the interest and possession, in cases of dishonor of the agreement.
- Transfer of Property Act, 1882 Section 55 of the Act makes it obligatory to the seller to fully disclose the nuances of the property to the buyer. In cases of misrepresentation, the seller will be held accountable. This section also talks about the buyer’s duty to make all necessary payments or charges in order to execute a conveyance deed.
- Consumer Protection Act, 2019 Newly formed Consumer Protection Act, 2019 is an empowering act. It also talks about the ‘product liability action’ which mentions about the compensation for deficiency of service. The deficiency of service also includes any action which has resulted in the breach of contract.
If the defaulting party fails to perform, the other party can file a suit for performance, suit for damages, suit for the price, suit for the breach of warranty, etc.