The plaintiff must prove readiness and willingness to perform the contract according to its true construction. The return of earnest money without reservation constitutes compensation, waiving the right to claim damages.

( 1 ) THIS appeal by the plaintiff is directed against the judgment and decree dated 11-4-1974 passed by the second Additional District Judge, bangalore, in R. A. No. 39 of 1973, on his file, modifying the judgment and decree dated 27-2-1973 passed by the principal Civil Judge, Bangalore, in os No. 102 of 1971, on his file, and reducing the quantum of damages granted by the learned Civil Judge.

( 2 ) THE plaintiff instituted a suit, for damages claiming total damages of rs. 12,265 from the defendants on the ground that the defendants committed breach of contract, namely, an agreement to sell the suit land. The plaintiff has averred that on or about 26-4-1948 a vacant piece of land then bearing Municipal No. 16 situate in Kumara Park East Extension, bangalore City, was purchased by defendant-5 (Firm) of which defendants 1 and 2 were partners. Defendant-5 (Firm) put up two buildings on the said site - one of them being a block of buildings consisting of 4 flats bearing Municipal Nos. 8, 9, 10 and 11 on the eastern portion of the vacant land and the other building which was put up on the western portion is a residential bungalow bearing Municipal No. 12. Defendant-2 retired from the Firm (defendant-5 ). But defendats 3 and 4 joined the Firm as partners subsequently. On 12-10-1970, defendants land 3 represented to the plaintiff that the defendants wished to sell the block of buildings bearing Municipal nos. 8, 9, 10 and 11 and the vacant space in front and they agreed to sell the same to the plaintiff for Rs. 1,94,000 net, and, pursuant to the agreement, received a sum of Rs. 10,000 from the plaintiff and executed a receipt for the same. The agreement was actually drawn up and executed on 20-10-1970. According to the agreement, the balance of consideration of the sale was to be paid by the plaintiff within a period of three months from the date of the agreement and a regular sale deed was to be obtained from the defendants. The defendants agreed that if they failed to execute the sale deed, they would refund the sum of Rs. 10,000 together with an additional sum of Rs. 10,000 for damages for breach of contract. The defendants were bound to make available all the title deeds in respect of the property. They did not make available the same to the plaintiff and, accordingly, the plaintiff got issued a lawyer's notice calling upon the defendants to make them available. Some time was extended by mutual agreement to make them available. On 23-2-1971, the plaintiff was served with a letter from the defendants enclosing a power of attorney authorising defendant- 1 to sell his right in the property by defendant-2 soon after the receipt of the letter, the plaintiff got drafted, according to him, a sale deed purporting to be a sale deed of the western portion of the property consisting of the two flats on the western side in the name of his wife as his nominee and the other half being on the eastern side to be conveyed in the name of the plaintiff. In that draft sale deed, however, the plaintiff made it clear that the defendants had to make arrangement for leading the water falling from the roof of the building of the defendants away from the buildings to be sold. He further included a clause that the window in the building of the defendants opening on the premises to be sold to the plaintiff should be closed. He further stipulated that a small strip of land leading to the garages should also be included in the sale deed and he further stated in the notice issued that in case the defendants were not ready to agree to the terms and sell the land, they should return Rs. 10,000 paid as earnest money. The defendants, however, were not agreeable for the additional terms imposed in the draft sale deed and they returned rs. 10,000 paid to them as earnest money on 3-4-71 through their Advocate by means of a cheque. The plaintiff encashed this cheque without prejudice to his right to claim damages for breach of contract. On these ave