# Paid bayana? Miss the date, lose it. > Yes, if the agreement says so and the buyer missed the agreed date. The Supreme Court has let sellers keep earnest money where a late buyer broke the timeline (2021 SCMR 1108; 2021 SCMR 7), within the "reasonable compensation" limit of Contract Act s.74. - Topic: Property and inheritance - For: Citizens - A 11-slide carousel: https://failegal.site/media/paid-bayana-miss-the-date-lose-it - Published by FAI Legal on 2026-10-12 ## 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 sum** Where the contract names a sum for breach, the other side gets reasonable compensation up to that sum. - **No loss proof** Whether or not actual loss is proved (s.74). - **Not oppressive** Forfeiting 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 36** Where the agreement spells out what happens if the date is missed, time is of the essence. The late buyer lost his case. - **2021 SCMR 7** A buyer who did not pay in time, even after the court's order, was not entitled to his earnest money back. - **Goodwill only** In both 2021 cases the sellers chose to refund half. The court praised it as grace. ## Ready and willing? Supreme Court, 2021 SCMR 7. - **Capacity** Show you can pay the balance within a reasonable time. - **Intention** Show you really mean to buy. - **Deposit on time** If 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 sell** Sue for specific performance (Specific Relief Act s.12). See our post "Seller backed out?" - **Double bayana** If you sue to enforce the sale, a "double bayana" clause does not apply (2024 CLC 1888). - **Receipt only** Where 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 full** Both parties, price, the plot by its measurements, signed and witnessed. - **Dates you can meet** If the loan or sale may run late, agree a longer date now. - **Pay traceably** Pay 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.** ## 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 ### Can the seller keep bayana if the buyer is late in Pakistan? Yes, if the agreement says so and the buyer missed the agreed date. The Supreme Court let sellers keep earnest money in such cases (2021 SCMR 1108; 2021 SCMR 7), within the reasonable compensation limit of Contract Act s.74. ### Is time of the essence in an agreement to sell? Where the agreement spells out what happens if the date is missed, the Supreme Court treated time as of the essence, and the late buyer lost (2026 SCMR 36). ### Is a bayana receipt an agreement to sell? No. A bare receipt needs the parties, the price, an exact description of the property and a clear meeting of minds to be an agreement (2019 SCMR 524). ### Does the double bayana clause apply if I sue for specific performance? No. If you sue to enforce the sale, a double bayana clause does not apply (2024 CLC 1888). ### How can a buyer protect bayana? Write the agreement in full with both parties, the price and the plot by its measurements, signed and witnessed. Agree dates you can meet, and pay by pay order or bank transfer. ## Sources - Contract Act, 1872 ยท Section 74: Compensation for breach of contract where penalty stipulated for --- Educational legal information, not legal advice. Every case turns on its own facts. Speak to a qualified lawyer about your situation. Review status: Pending advocate review. FAI Media is part of FAI Legal (https://failegal.site), research on Pakistani statutes and judgments. Free to watch and read.