Vendor cancels - compensation?

Can anyone tell me what compensation a buyer is entitled to if a vendor tries to back out of a final S&P agreement?


Are there any circumstances where the vendor is entitled to just refund the 10% deposit with no further coverage of costs or compensation? And when does a vendor have to pay a further 10% on top of the initial 10% deposit as compensation?


Cheers!

If you have signed the Provisional Agreement for S&P, it is usually stated that the Vendor will refund the initial deposit together with an equal sum as liquidated damages (i.e. compensation). However, if you have signed the Formal Agreement for S&P already which supersedes the Provisional Agreement, and you have received the further deposit (i.e. 10% deposit in total), then it depends on the wording as stated in the Formal Agreement.


In a typical Formal Agreement, it usually states that the Vendor will refund the 10% deposit to you and if you have any loss (which you have to prove and to assess), you can sue the Vendor. We would want to check the contents of the Formal Agreement.


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