Rarity Holdings Ltd v David Samuel Parkhill
[2024] EWHC 1637 (Ch)
Restitutionary principles: A buyer who has enjoyed possession should not recover more than eliminates unjust enrichment of the seller.
Court of Appeal judgment
Total failure of consideration: Money had and received to the claimant’s use can be recovered where the basis (consideration) has wholly failed.
Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943] AC 32
Partial failure of consideration: A partial failure of consideration for a particular payment gives rise to no claim for recovery of part of what has been paid.
Barnes v Eastenders Cash & Carry plc [2015] AC 1
Interpretation of entire agreements: The entire agreement must be considered to understand the basis of the payments.
Privy Council judgment
Repudiation and discharge: Acceptance of repudiation discharges primary obligations and substitutes secondary obligations to compensate for losses, subject to contractual limitations on remedies.
Privy Council judgment
Contractual allocation of risk: Contractual terms govern the parties' entitlements upon termination, unless the basis for the payment has totally failed.
Privy Council judgment
Mayson v Clouet [1924] AC 980: The repayability of instalments depends on the contract's terms and circumstances. Possession before final payment is a key differentiator.
Mayson v Clouet [1924] AC 980
Appeal dismissed.
Buyer was not entitled to recover interest payments because possession of the lots formed a material part of the basis for those payments. The total failure of consideration argument failed because the buyer enjoyed a significant benefit (rent-free possession) under the agreements.
[2024] EWHC 1637 (Ch)
[2024] UKPC 18
[2024] EWHC 187 (Ch)
[2023] EWHC 3043 (Ch)
[2023] UKPC 31