Author: Gavin Whitney
This article was published in Property Week on 7 February 2017.
The payment of a deposit by a buyer to a seller under a contract for sale is a fundamental part of a transaction since it comprises the “consideration” that all first year law students learn is necessary – along with offer and acceptance – for the formation of a binding agreement between parties.
It ensures that a buyer “puts its money where its mouth is” and makes a payment to the seller as a guarantee of its performance. If the buyer fails to perform, then most contracts will provide that the contract is capable of rescission by the seller who can then also forfeit the deposit.
Gavin Whitney, Partner, Fladgate LLP (firstname.lastname@example.org)
We operate in small teams in which partners not only take the lead but also do a significant amount of the detailed work. Clients can be assured that the partners they engage and brief will remain closely involved in developing and delivering the advice as part of our close-knit, expert teams.
Fladgate has a long heritage of delivering high-quality legal advice. We have been providing practical legal solutions to businesses and private clients for over 250 years. Today we are one of the UK’s top 100 law firms, with over 80 partners and a reputation for providing solutions that work.
T: +44 (0)20 3036 7000
F: +44 (0)20 3036 7600
DX: 37971 Kingsway
The legal content provided by Fladgate LLP is for information purposes only and should not be relied on in any specific case without legal or other professional advice.
Copyright is owned by Fladgate LLP and all rights in such copyright are reserved. Material is not to be reproduced in whole or in part without prior written consent.
Fladgate LLP is a limited liability partnership, registered in England and Wales with registered number OC334334. It is authorised and regulated by the Solicitors Regulation Authority, number 484783. The term partner is used to refer to a member of Fladgate LLP. A list of members is available at the registered office shown above.