About an ambiguous clause in an agreement

5 years ago

Hello Sir(s),

I need your expert advice on a matter. Its just interpretation of a clause in an agreement. Actually its about a purported agreement between two parties in which first party is allowing the second party to sale its land to a third party. The 2nd party will have to make some legal and administrative hurdles before the land could be successfully sold to a 3rd party. This involves some costs which will be borne by the 2nd party. After settling and clearing all the legal and administrative issues, the 2nd party will be paying the 1st party a sum of Rs. XYZ.

For the same, the 2nd party has got the draft agreement made by some lawyer of his choice. However one of the clauses that mentions the sale and payment of money to the 1st party is ambiguous in meaning. Cud u pls have a look at it and give ur expert opinion on it? As some people are saying that the 2nd party will pay the amount after adjustment of the expenses borne in clearing the leagl & administrative expenses involved in the sale and will pay the remaining amount out of the total promised amount. While others are saying that the entire agreed XYZ amount will be paid by the 2nd party.

This is the clause in the agreement which is confusing and ambiguous:

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"That the First parties will be entitled to get after making some expenses by the Second party and also after adjusting all relevant expenses made by the Second party, the Second party will pay a rest amount of Rs. XYZ to the First Parties for handing over the aforesaid landed property by way of sell to the Third Party/Parties through the intervention of the Second Party."

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