Cancellation of Sale Agreement

Shivendra Pratap Singh


High Court Lucknow

Civil Law

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Advised on 29 Apr, 2022

Question: Cancellation of sale agreement without consent of party. I executed an agreement of sale for a 497 sq.yards site with a condition that I will get clearance from ULC. I took advance of 2 lakhs cheque and 2 lakhs cash, totalling to 4 lakhs. It’s been 22 months and I could get ULC clearance for 385 SQ.Yards and now wanted to cancel the sale agreement. Will I be able to cancel without acceptance from the buyer? What legal complications I might have to face. Pls suggest.

Asked from: Andhra Pradesh

You can cancel this agreement without the consent of the buyer but you have to refund the advance you received from him. The sale agreement was for the sale of 497 sq yard site. But you cannot sell that area because you have no requisite permission from the ULC.

Hence, the agreement has been frustrated due to impossibility. When the contract becomes impossible to perform it becomes void. Party cannot enforce a void agreement. Hence, any party can cancel such a void agreement but he must refund the profit. Cancellation of sale agreement without consent of party is possible in your case.