The case of a UK couple from North London suing a Nigerian billionaire for pulling out of a property deal has been given lots of coverage.
The Defendant entered into a binding contract to buy the Claimants' home. The only blank in the contract was the completion date but it appears this issue was not discussed at length.
The Defendant had paid a deposit of £500,000 and then decided to pull out.
But the deposit was not all he lost. The Claimants subsequently sold their home for £800,000 less and the Court held that they were entitled to this amount in damages. In fairness the deposit counted towards this amount but still.
Every case has to be decided on its facts but please do not think you only stand to lose your deposit if you pull out of a binding deal.
Very often people pull out of deals because the market suddenly takes a dip; this case will not be of much comfort to them.
Couple win £1m payout from Nigerian billionaire prince after he pulled out of £5m deal to buy their seven-bed London mansion