A deposit of 25 per cent had been demanded when the prevailing local rate was 10 per cent. The Privy Council advised that the deposit should be repaid subject to a set-off for any loss actually sustained. The court will not re-write the contract by inserting a reasonable figure and allowing the payee to retain the sum. So, the courts are willing to regulate contracts which specify unreasonable deposits.
Answer
Workers Trust and Merchant Bank Ltd v Dojap Investments Ltd [1993] AC 573
Tags
#contract #law #remedies
Question
A deposit of 25 per cent had been demanded when the prevailing local rate was 10 per cent. The Privy Council advised that the deposit should be repaid subject to a set-off for any loss actually sustained. The court will not re-write the contract by inserting a reasonable figure and allowing the payee to retain the sum. So, the courts are willing to regulate contracts which specify unreasonable deposits.
Answer
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Tags
#contract #law #remedies
Question
A deposit of 25 per cent had been demanded when the prevailing local rate was 10 per cent. The Privy Council advised that the deposit should be repaid subject to a set-off for any loss actually sustained. The court will not re-write the contract by inserting a reasonable figure and allowing the payee to retain the sum. So, the courts are willing to regulate contracts which specify unreasonable deposits.
Answer
Workers Trust and Merchant Bank Ltd v Dojap Investments Ltd [1993] AC 573
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Open it As a matter of law, a deposit is not normally recoverable, even if the payee has not suffered any loss as a result of the breach. However, in Workers Trust and Merchant Bank Ltd v Dojap Investments Ltd [1993] AC 573, the Privy Council imposed a limitation on this general rule. The general rule only applies if the deposit was given in earnest of performance. A deposit of 25 per cent had been deman
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