धारा 16

Where a contract is made with a person competent to transfer ownership in immovable property for the transfer of such property for a consideration, and it is agreed in the contract that such property or any other property dealt with by the contract shall be transferred, or that the contract shall be rescinded, or that any other benefit giving rise to a right or liability shall accrue to any party to the contract, then, if such contract is not intended to be a contract of mortgage, the property, if already in existence, shall be transferred as agreed, and if not already in existence, the parties to the contract shall bear the loss proportionally, or as agreed upon, or the contract shall be rescinded as agreed, or the benefit, if any, shall accrue as agreed, and the parties to the contract shall bear the loss proportionally, or as agreed upon.