I gave a token amount by cheque (made out to the owner) to an agent for a flat in Mumbai. The owner is currently in the UAE. I decided to cancel the deal within three days of giving the token money, informing them through WhatsApp. However, there was no formal agreement or contract outlining the payment schedule or receipt of the token money. I’m requesting a refund, minus a reasonable amount, but the owner refuses to return any money, claiming that since I cancelled the deal, no refund is applicable.

Apni Law
Apni Law
Law Forum › Category: Civil › I gave a token amount by cheque (made out to the owner) to an agent for a flat in Mumbai. The owner is currently in the UAE. I decided to cancel the deal within three days of giving the token money, informing them through WhatsApp. However, there was no formal agreement or contract outlining the payment schedule or receipt of the token money. I’m requesting a refund, minus a reasonable amount, but the owner refuses to return any money, claiming that since I cancelled the deal, no refund is applicable.
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Apni Law Staff asked 12 months ago

I gave a token amount by cheque (made out to the owner) to an agent for a flat in Mumbai. The owner is currently in the UAE. I decided to cancel the deal within three days of giving the token money, informing them through WhatsApp. However, there was no formal agreement or contract outlining the payment schedule or receipt of the token money. I’m requesting a refund, minus a reasonable amount, but the owner refuses to return any money, claiming that since I cancelled the deal, no refund is applicable.

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Best Answer

Apni Law Staff answered 12 months ago

In India, a token amount without a formal agreement does not automatically bind you to the deal. However, the owner may argue that your WhatsApp message was insufficient notice and claim the token amount as “damages” for your breach. Your chances of getting a refund depend on the specific details of the transaction and whether the owner can prove substantial loss due to your cancellation.

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