Forbes v. Tobin [2001] IEHC 30 (8th March, 2001)

Forbes v. Tobin [2001] IEHC 30 (8th March, 2001)

The Plaintiff was not entitled to specific performance because he was not willing to pay VAT, which was legally exigible, and thus was not ready, willing, and able to complete the contract. However, the Defendants were not entitled to forfeit the deposit because, at the time of the completion notice, they were not ready and able to complete in accordance with the contract, having demanded obligations not required by the contract.

Citation
[2001] IEHC 30
Parties
Purchaser: Plaintiff; Vendors: Defendants
Jurisdiction
Ireland
Procedural Posture
Specific Performance of Contract for Sale / High Court Judgment
Outcome
Specific performance refused; contract declared rescinded; injunction granted restraining forfeiture of deposit; order for repayment of deposit with interest.
Legal Topics
Specific Performance, Forfeiture of Deposit, Value Added Tax on Property Sale, Completion Notice Validity, Rescission of Contract
Contract Law Property Law Equity Specific Performance Forfeiture of Deposit Value Added Tax on Property Sale Completion Notice Validity Rescission of Contract

Case Brief

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Parties

Plaintiff

Purchaser

Defendants

Vendors

Procedural Posture

Specific Performance of Contract for Sale / High Court Judgment

Legal Issues

  1. 1 Whether the Plaintiff was entitled to specific performance of the contract for sale
  2. 2 Whether VAT was exigible on the sale
  3. 3 Whether the Defendants were entitled to forfeit the deposit

Ratio Decidendi

The Plaintiff was not entitled to specific performance because he was not willing to pay VAT, which was legally exigible, and thus was not ready, willing, and able to complete the contract. However, the Defendants were not entitled to forfeit the deposit because, at the time of the completion notice, they were not ready and able to complete in accordance with the contract, having demanded obligations not required by the contract.

Court Disposition

Specific performance refused; contract declared rescinded; injunction granted restraining forfeiture of deposit; order for repayment of deposit with interest.

Orders

  • Refusal of specific performance
  • Declaration that contract for sale is rescinded