Question:
We gave two places to a developer, and the registration contract mentioned that if the work is not completed on time, the contract will be canceled automatically. More than four years have passed without completing the work, and the developer is absconding. He has secretly sold all of his shares. In such a situation, if the contract is canceled automatically, what should we do now? Can a lawyer help in this matter, and how?
Answer:
In this situation, where the developer has failed to fulfill the terms of the contract and is absconding, here’s what you should do:
- Review the Contract: Carefully read the contract, especially the clause that mentions automatic cancellation of the agreement. Ensure that the contract clearly stipulates this, and check if there are any specific conditions or steps required to formalize the cancellation.
- Check Legal Grounds for Breach: The developer’s failure to fulfill their obligations within the given time frame is a breach of contract. Since they are absconding and have sold off shares secretly, this can be considered further evidence of misconduct.
- Send a Legal Notice: Before taking legal action, it is recommended to send a formal legal notice to the developer. This notice should mention the breach of contract, the automatic cancellation, and demand that they return any payments or property related to the agreement.
- File a Case in Court: If the developer is unresponsive or refuses to cooperate, you may need to file a case in court for breach of contract. You can request a court order to cancel the contract, seek damages, and possibly recover any funds or assets from the sale of the shares.
- Seek Legal Assistance: Consulting a lawyer is crucial in this matter. A lawyer will help you:
- Understand the full scope of your legal rights.
- Draft and send a legal notice to the developer.
- Take appropriate legal steps to cancel the contract and seek damages or compensation for any losses.
- File a suit for breach of contract and help retrieve any assets sold secretly by the developer.