Paid bayana? Miss the date, lose it.

Myth or fact?

What buyers often assume.

• Myth: Bayana is only a deposit. If the deal fails, I always get it back.
• Fact: If you miss the agreed date and the agreement says the bayana is forfeited, the court can let the seller keep it (2021 SCMR 1108; 2024 CLC 1888).

The rule in the law.

Section 74, Contract Act, 1872.

• The named sumWhere the contract names a sum for breach, the other side gets reasonable compensation up to that sum.
• No loss proofWhether or not actual loss is proved (s.74).
• Not oppressiveForfeiting earnest money of under 3.5 percent of the price was not "oppressive" (2019 SCMR 101).

Quick quiz. Paid late.

Guess first, then swipe for the answer.

• A. He must accept the money
• B. Keep the bayana and refuse
• C. Ask the police to decide

Answer: B. Time mattered.

The Supreme Court on late buyers.

• 2026 SCMR 36Where the agreement spells out what happens if the date is missed, time is of the essence. The late buyer lost his case.
• 2021 SCMR 7A buyer who did not pay in time, even after the court's order, was not entitled to his earnest money back.
• Goodwill onlyIn both 2021 cases the sellers chose to refund half. The court praised it as grace.

Ready and willing?

Supreme Court, 2021 SCMR 7.

• CapacityShow you can pay the balance within a reasonable time.
• IntentionShow you really mean to buy.
• Deposit on timeIf the court orders a deposit, make it. Not doing so cost one buyer his case.

Myth or fact?

The receipt problem.

• Myth: I have a receipt for the bayana. That is my agreement.
• Fact: A bare receipt is not an agreement to sell. It needs the parties, the price, an exact description of the property and a clear meeting of minds (2019 SCMR 524).

If the seller backs out.

The other side of the deal.

• Make him sellSue for specific performance (Specific Relief Act s.12). See our post "Seller backed out?"
• Double bayanaIf you sue to enforce the sale, a "double bayana" clause does not apply (2024 CLC 1888).
• Receipt onlyWhere no agreement was proved, the money was ordered returned with markup (2019 SCMR 524).

Before you pay bayana.

Three checks, every time.

• Write it in fullBoth parties, price, the plot by its measurements, signed and witnessed.
• Dates you can meetIf the loan or sale may run late, agree a longer date now.
• Pay traceablyPay order or bank transfer, and keep every proof.

Buying property?

Ask FAI in your own words. It answers with the exact section and the judgments behind it.

• I paid bayana but my bank loan came late. Can the seller keep my advance?
• Draft an agreement to sell with a fair forfeiture clause.

Example questions

What this does not mean

• Bayana is not always lost. The rulings apply where the agreement says it is forfeited and the buyer missed the agreed date.
• Section 74 of the Contract Act allows reasonable compensation up to the named sum, not any amount the seller wants.
• A bare receipt is not an agreement to sell (2019 SCMR 524). Where no agreement was proved, the money was ordered returned with markup.

Questions people ask

Sources

• Contract Act, 1872 · Section 74
  Compensation for breach of contract where penalty stipulated for Pakistan Code