Source: All England Reporter
Publisher Citation: [2011] All ER (D) 192 (Nov)
Neutral Citation: [2011] EWCA Civ 1383
Court: Court of Appeal, Civil Division
Judge:

Laws, Toulson and Black LJJ
Representation John Small (instructed by bond Adams LLP) for the claimants.
  Stephen Taylor (instructed by Frisby & Small LLP) for the defendant.
Judgment Dates: 23 November 2011

Catchwords

Contract - Failure of consideration - Recovery of money - Money paid under void contract - Payer receiving benefits under contract - Claimants making oral contract with defendant company to pay deposit on block of flats - Defendant agreeing to refrain from marketing flats - Claimants paying deposit - Defendant honouring agreement - Claimants deciding not to proceed with purchase of flats - Defendant withholding deposit - Claimants bringing proceedings - Judge finding claimants being entitled to return of deposit as money paid under void contract - Whether judge erring - .

The Case

Contract Failure of consideration. The Court of Appeal, Civil Division, in allowing the defendant company's appeal against the judge's decision that the claimants had been entitled to the return of their deposit as money paid under a contract for the sale of land which had been void, held that the claimants had obtained the benefit they had paid for and as their expectations had been fulfilled, there was no injustice in the defendant retaining the deposit.

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