MATTHES APPUHAMY v. RAYMOND et al.

MATTHES APPUHAMY v. RAYMOND et al.

D. C., Colombo, 5, 861.

 

Specific performance-Agreement to sell land-Stipulation for damages Alternative obligation-Conveyance of land to person other than the one to whom owner is under agreement to sell.

An agreement between plaintiff and first defendant for sale of a parcel of land by first defendant to plaintiff contained the stipulation that if first defendant failed, refused, declined, or in any manner objected to sell the land as agreed, he should pay plaintiff Rs. 500 as liquidated damages and return to him the part of the purchase money advanced by him to defendant. It also contained a covenant on the part of plaintiff not to lease, encumber, or alienate his interest in the premises until the deed of transfer was executed by first defendant, and a mortgage of the premises by first defendant to plaintiff to secure return of the part purchase money and payment of the damages aforesaid-

Held, that in the circumstances of this agreement, the penal, stipulation was intended to be an alternative to the principal obligation on the part of first defendant, and not merely accessory to

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