Complex Law Ltd recovered £89,669 Enforcing Repayment After Rescission
When a developer fails to complete a development project by the agreed date and refuses to return a buyer's deposit, the financial consequences can be significant. In those circumstances, swift and decisive action is often required, particularly where there are clear signs that the developer may beu nable to pay its debts as they fall due.
The challenge
Our client entered into an agreement in 2022 to purchase a property. In accordance with the agreement, our client paid a deposit of £88,250.00 to the seller.
Completion did not take place. Following the long-stop date passing without completion (and due to breaches of the agreement), our client served a notice of rescission on in 2026, requesting repayment of the deposit within seven days. Despite that request, our client received no payment.
In addition, our client had serious concerns that the seller was unable to pay its debts as they fell due, meaning an immediate, robust strategy was required to protect our client’s position and maximise recovery prospects.
Our approach
We wrote formally on our client’s behalf demanding payment of the sums due.
Total demanded: £89,130.27
Given the apparent insolvency risk, we made clear that if payment was not received by the cut off date, our client would present a winding up petition pursuant to section 122(1)(f) of the Insolvency Act 1986, without further notice.
This approach is often effective where a debtor company is delaying payment: it makes the legal consequences, and the urgency, unavoidable.
The outcome / next steps
Our team placed the recipient on clear notice of:
- the contractual basis for repayment following rescission,
- the total sum due (including ongoing interest), and
- the immediate insolvency consequences of continued non-payment.
Where payment is not made by the stated deadline, the next step is to proceed with the petition as set out in the letter, ensuring our client’s position is advanced quickly and decisively.
Fortunetely for our client the matter was resolved shorlty.
Why this matters
This case illustrates a key principle: where a counterparty fails to complete and does not return sums due after rescission, a buyer may have strong remedies, especially where there are indications the company cannot meet its liabilities.
For businesses and individuals alike, acting early can be critical. A carefully drafted demand letter that sets out the debt, interest, costs, and the consequences of non, payment can be the difference between recovery and prolonged delay.
Our commitment
At Complex Law, we combine commercial realism with robust litigation strategy. Where deadlines are missed and funds are withheld, we move quickly protecting our clients’ interests and applying appropriate pressure to secure the right outcome.
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