Can a Memorandum of Understanding (MoU) be Canceled?


On selling our property, the buyer did not complete the transfer by the date in the MOU. The buyer claims he had an emergency and other circumstances prevented the issue of NOC. The buyer claims to have the manager’s cheque (not seen by us).

However, as sellers, we did everything expected in the MOU and traveled to Dubai at the time required to complete the transfer.
Under these circumstances:

  1. Is the seller entitled to the deposit?
  2. Can the MOU agreement be canceled?



Upon reviewing the facts presented, it is my understanding that there has been a breach of Memorandum of Understanding (“MoU”). It appears that buyer’s conduct is not in line with the terms and conditions agreed between the parties. In order to reach that conclusion, you are kindly requested to send us a copy of MoU.

Assuming that there was a breach of contract due to actions of the buyer, you are entitled to compensation or any remedy under the agreement. You may also be entitled to retain the deposit paid by the buyer, but before you take that decision kindly send us the copy of MoU for review.

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