Kishan Dutt
VALIDITY OF AGREEMENT OF SALE IN RESPECT OF FILING A SUIT FOR SPECIFIC PERFORMANCE UNDER LIMITATION ACT
Kishan Dutt Kalaskar 19 Mar 2025

VALIDITY OF AGREEMENT OF SALE IN RESPECT  OF FILING A SUIT FOR SPECIFIC PERFORMANCE   UNDER LIMITATION ACT

INTRODUCTION: -An Agreement of Sale has a significant importance in the legal and real estate areas. The foundation of a contractual relationship between the buyer and the seller, includes the terms and conditions regarding a particular sale. The Agreement of Sale also includes the certain limitation for the purpose to file a suit for specific performance, ensuring the fulfilment ofthe terms. Through this blog will be exploring the validity of the Agreement of Sale and the limitations to file a suit for specific performance, probing into its explanation.

BACKGROUND: - The specific performance is a type of legal remedy. The origin or the traces can be found back in the common law system in England. The growth of the remedy under specific performance has been addressed by the courts, especially for those situations where pecuniary compensation was inadequate as a remedy under the breach of a contract. And over time, a valid structure was introduced through various legal systems worldwide. In India, the Specific Relief Act, 1963, governs the provisions and contractual obligations related to specific performance.

KEY VALIDATION: - The important aspects under this are-

·        An agreement of sale is a legal document that outlines the terms and conditions, sanctioned between buyer and seller.

·        The agreement must contain the free assent of each party involved.

·        Proper validation also depends on the eligible documentation, upon which both party are agreed.

·        Exploring on the nature and value of the property, the agreement may need to be registered with the eligible authorities.

·        The agreement should maintain a proper clarification, which states the possibility of seeking specific performance as a remedy.

·        The limitation period for filing a suit for specific performance most of the time are three years from the date fixed for performance or when the plaintiff has notice of the refusal to perform if there is specific period is mentioned etc.

 

LEGAL PROVISION: - The mentionable statutory provisions are-

1.     The Specific Relief Act, 1963. This has less down the enforcement of specific performance under the purview of India.

2.     The Indian Contract Act, 1872, which less downs the general principles of contract law, which apply to the creation and execution of an Agreement of Sale.

3.     The Limitation Act, 1963, which less downs or prescribes the limitation period for filing a suit for specific performance.

OVERALL ANALISIS: - The validity of an Agreement of Sale and the limitation to file a suit for specific performance are interconnected with each other. For an Agreement of Sale to be valid, it must comply with the provisions mentioned under the Indian Contract Act, 1872, which includes ensuring the free consent, lawful consideration, and a lawful object, and also the terms and conditions of the agreement must be certain.

On the other hand the specific performance works as a remedy which is particularly relevant transactions related to real estate. Where the property is being sold may have unique characteristics that makes the compensation an unapproachable remedy. The Specific Relief Act, 1963, provides the legal basis for enforcing specific performance, ensuring that the contractual obligations are fulfilled.

The limitation period for filing a suit under specific performance is another aspect which must be sustained for validation. The specific Act which is the Limitation Act, 1963, specifies that the legal actions are taken within a reasonable time frame, preventing any unnecessary delays ensuring certainty. It is an essential eligibility through which the parties to an Agreement of Sale must be aware of and take timely legal action to enforce their rights.

CASE LAW: -

·        Ram Das v. Smt. Lila D. Bhagat (2002): the Supreme Court held that the limitation period for filing a suit for specific performance begins from the date fixed for performance or, if no such date is fixed, when the plaintiff has notice of the refusal to perform. The court emphasized the importance of adhering to the limitation period to ensure timely enforcement of contractual obligations.

·        K.S Vidyanadam v. Vairavan (1997): This case has underscores the importance of timely action in filing a suit for specific performance and the impact of delay on the validity of the sale agreement.

CONCLUSION: - The sale agreement and the ability to file a suit for specific performance are intertwined with each other to comply with legal provisions, including timely action. Under the Limitation Act, for filing such suits also has the great importance. Above mentioned landmark cases also indicates the critical importance of acting within this limitation period to enforce contractual obligations effectively. This ultimately will help to uphold the integrity and enforceability of agreements, for any relevant inconvenience regarding above mentioned matters you can contact Online Legal Query, who can navigate you towards those senior legal experts who are eligible also qualified to help so far through proper presentation of knowledge.

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