Vendee (Defendant) paid Rs. 1,000 as earnest money and then Rs. 24,000 after 7 days, as out of sale price. If the vendee does not pay the balance by the agreed date, the whole amount of Rs. 25,000 is deemed to be forfeited as per the agreement. He failed to pay the balance amount. Which amount is liable to be forfeited as earnest money?

Option A: Rs. 1,000

Option B: Rs. 25,000

Option C: Rs. 24,000

Option D: Nothing.

Correct Answer

Option: a

Explanation

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