Akil entered into an Agreement for Sale on 10th January 2025 to purchase a residential property from Yash for ₹ 80 Lakh. Akil paid ₹ 20 Lakh as advance. The agreement stipulated that the balance amount would be paid with

In this scenario, the agreement between Akil and Yash constitutes a valid and enforceable contract under the Indian Contract Act, 1872. Yash's act of selling the property to a third party during the subsistence of the agreement amounts to breach of contract. Akil has a strong case for specific performance under the Specific Relief Act, 1963, provided he can demonstrate readiness and willingness to perform his part of the contract. Alternatively, he may claim damages for breach. If Leena purchased the property with knowledge of the prior agreement, Akil may also seek relief against her. It is advisable for Akil to promptly file a suit for specific performance and seek interim relief to restrain further alienation. Exceptions and Reservations Clause It refers to admission of certain rights to be enjoyed by the transferor over the property to be agreed to by the transferee. All exceptions and reservations out of the property transferred should follow the parcels and operative words. It is the contractual right of the parties to the contract or to the document to provide exceptions and reservations which should not be uncertain, repugnant or contrary to the spirit of law applicable to a particular document or circumstances. For example, Section 8 of the Transfer of Property Act, 1882 provides for transfer of all the interest to the transferee in the property and any condition opposing the provisions of law will be void. Further, Section 10 of the said Act provides that any condition or limitation absolutely restraining the transferee of property in disposing of his interest in the property is void. So, nothing against the spirit of law can be provided in the document. The clause generally is signified by the use of words "subject to" in deeds, where it is mentioned, it is advisable that both the parties sign, to denote specific understanding and consenting to this aspect. In view of the nature of this clause, an exception and reservation clause would not by itself fully protect Akil against sale to a third party. Akil's stronger protection would be a properly drafted and registered agreement for sale, specific performance clause, negative covenant restraining alienation, notice/public record protection where available, and immediate interim injunction. The exception/reservation clause is relevant only if some rights were expressly reserved or made subject to the prior agreement.