Case Law Details
State of Haryana & Ors. Vs. M/s. Malik Traders (Supreme Court of India)- A person may have a right to withdraw his offer but if he has made his offer on a condition that some earnest money will be forfeited for not entering into contract or if some act is not performed, then even though he may have a right to withdraw his offer, he has no right to claim that the earnest/security be returned to him. Forfeiture of such earnest/security, in no way, affects any statutory right under the Indian Contract Act. Such earnest/security is given and taken to ensure that a contract comes into existence. It would be an anomalous situation that a person who, by his own conduct, precludes the coming into existence of the contract is then given advantage or benefit of his own wrong by not allowing forfeiture.
Supreme Court of India
State of Haryana & Ors. Vs. M/s. Malik Traders
Civil Appeal No. 7033 of 2011
[arising out of S.L.P.(C) No. 24107 of 2009]-
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what is the process of emd forfiture