1957 Present: Basnayake C.J., Gunasekara J., Pulle J., de Silva J., and
Sansoni J.

JOSEPH PERERA, Appellant, and LEWIS ABEYSEKERA,
Respondent

S. C. 140-D. C. Chilaw, 13,210

Contract-Informal agreement to sell immovable property-Time limit fixed for execution of deed of sale-Deposit of part of purchase price--Forfeiture clause- Failure of purchaser to pay balance sum within stipulated period-Right to claim refund of deposit-Unjust enrichment-Money had and received- Prevention of Frauds Ordinance, s. 2.

Where, under a non-notarial agreement to sell immovable property, a sum of money is paid in advance by the purchaser, but the sale subsequently falls through, the subsidiary agreement as to the destination of the money paid in advance is severable from the agreement for the sale of the immovable-property and is valid.

By a non-notarial agreement the defendant agreed to convey to the plaintiff certain immovable property for Rs. 45,000. The plaintiff paid Rs. 5,000 in advance and it was stipulated in the agreement that, upon payment of the balance sum of Rs. 40,000, the conveyance was to be executed on or before November 8, 1949, i.e., with