THE TRANSFER OF PROPERTY ACT 487
purchaser, has improperly declined to accept delivery. Under the second part of the clause, the purchaser gets certain additional rights which he can claim, only if, he can show that “he has properly declined to take delivery” and the burden of showing it will be upon him.
- Under this clause, a buyer has a right to a charge for three things :—
(i) for the amount of purchase money properly paid,
(ii) for the earnest if any,
(iii) for the costs awarded to him.
Charge for Purchase money paid.
This charge attaches from the moment the buyer pays any part of the purchase money.
Charge for purchase money is lost only when the seller proves that the buyer has improperly declined to take delivery. The burden of proof is upon the seller.
Charge for earnest and cost.
(1) There is a possibility for a charge in respect of these two. But this possibility will be realized only if the buyer proves that he has properly declined to take delivery. The burden of proof is upon the buyer.
- Earnest and Part Payment of Purchase money.
(1) What is stated above about charge in respect of earnest applies only if the money paid is paid as earnest.
(2) Money paid by a buyer before conveyance serves two purposes: (1) It goes in part payment of the purchase money for which it is deposited. (2) It is security for the performance of the contract. In the latter case it is earnest. In the former case it is instalment.
(3) This difference is important because whether there would be a charge or personal liability or there would not be, would depend upon whether the payment made is Instalment or Earnest.
(i) If it is earnest—There is no charge (except in the case of a buyer who proves that he has properly declined to take delivery). Earnest is