Developer and Forfeit money

Discussion in 'Development' started by Arijit Kundu, Jul 23, 2018.

  1. Arijit Kundu

    Arijit Kundu New Member

    We signed an agreement with a developer and he agreed to construct a multi storeyed building on our land.

    He also gave us an initial amount of forfeited money .

    As per the agreement signed,he is supposed to provide us a temporary relocation (shifting); which he is unable to do now. So this is his inability,not ours. Now he is saying that he will have to cancel the agreement.

    If the cancellation is done, do we have to return that forfeited money ?
     
  2. nmb

    nmb Well-Known Member

    I would assume that "forfeited" money is exactly that - money which will not be returned under any circumstances. You will need to look at your original agreement in more detail to see where you stand. I cant see a situation where "forfeited" money would ever be returned - or am I reading this wrong?
     
  3. Longterminvestor

    Longterminvestor Active Member

    I presume you took legal advice before the agreement was signed?

    In the event that he has failed to fulfil his legal obligations then the “forfeited money” must be yours. Otherwise, if an agreement can be changed further on down the line without paying this “forfeited money” what is the point?
     
  4. Surely this is an open and shut case? The seller is not able to deliver on their side of the deal therefore they must forfeit the funds which were deposited to cover this type of failure. As far as I can see there is no other way to read this situation?
     
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