The appellant purchaser failed to close on an agreement of purchase and sale for a residential property in Mississauga.
After receiving multiple extensions, the appellant ultimately did not close due to inability to obtain mortgage financing.
The respondent vendors resold the property for a lower price and sued for damages.
The motion judge awarded damages for the difference in price plus consequential losses, and ordered forfeiture of the $75,000 deposit without crediting it toward the damages.
On appeal, the court upheld the damages award but reversed the deposit forfeiture issue, holding that the deposit must be credited toward the damages when the vendor suffers a loss from the purchaser's breach.