Solid Rock Investments UK Ltd v Reddy and another

Sale of land – Deposit. The Chancery Division dismissed the appellant buyer's appeal against a master's decision refusing to exercise the discretion, under s 49(2) of the Law of Property Act 1925, to order the sellers of the property in question to repay the buyer's deposit of £43,000. The deposit had been paid under a contract for sale in respect of the purchase of property in an auction and the sellers had rescinded the contract after the buyer had failed to pay the balance of the purchase price on the completion date. The court held that the discretion under s 49(2) would only be applied in exceptional circumstances and that, on the facts, there had been no error in principle in the master's decision.

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